Starbucks (SBUX), Wyndham (WYND), Aptiv (APTV): Insider Buys of the Week

Following a lethargic July, insider buying and selling activity have both increased in August, with insider selling activity being particularly robust. August 17 saw the most insider sales in a single day (295) since February 20.

However, we’re far more interested in insider buying activity, which can provide valuable insight into stocks that are perceived as undervalued by a company’s most influential and informed executives. Among the companies with notable insider buying activity during the past week, during which 289 purchases were made, were Wyndham Destinations Inc (NYSE:WYND), Aptiv PLC (NYSE:APTV), and Starbucks Corporation (NASDAQ:SBUX). We’ll take a look at those transactions and why insiders like those stocks below.

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Wyndham Destinations Inc (NYSE:WYND)

Who Bought Shares: CEO & President Michael Dean Brown

How Many Shares Were Bought: 6,000 @ $45.20 per share

Date of the Transaction(s): August 21

Wyndham Destinations Inc (NYSE:WYND)’s CEO and President Michael Dean Brown purchased 6,000 shares of the company that he leads on August 21, lifting his direct ownership position to 20,605 shares. Mr. Brown also directly owns 86,898 restricted stock units. The insider purchase by Mr. Brown, who joined the company in 2017 after most recently serving as COO at Hilton Grand Vacations, was the first insider purchase by a Wyndham Destinations executive in two-and-a-half years.

Formerly known as Wyndham Worldwide Corporation, the company completed the spinoff of its hotel division Wyndham Hotels & Resorts Inc (NYSE:WH) at the beginning of June, setting up Wyndham Destinations Inc (NYSE:WYND) as a pure-play in the vacation ownership and resort industry. With a P/E of just 4.02 and dividend payments that yield 3.65% annually, there’s a lot to like in Wyndham Destination’s shares, which are also trading below their peers in valuation after 15% declines in 2018. Wyndham Destination recently raised its 2018 Adjusted EPS guidance to $4.74-$4.94 from $4.55-$4.75, topping the consensus on the bottom-end of the new range.

On the next page, we’ll check out two other stocks with major insider buying activity last week.

Aptiv PLC (NYSE:APTV)

Who Bought Shares: Director Frank Dellaquilla

How Many Shares Were Bought: 750 @ $89.00 per share

Date of the Transaction(s): August 23

Aptiv PLC (NYSE:APTV) Director Frank Dellaquilla’s purchase of 750 shares was the first by an insider since he himself purchased 500 shares six months earlier. Mr. Dellaquilla now has direct ownership of 4,818 Aptiv shares. Mr. Dellaquilla, who serves as Senior Executive Vice President and Chief Financial Officer of Emerson Electric Co. (NYSE:EMR), joined Aptiv’s board in December 2017.

Aptiv PLC (NYSE:APTV) recently celebrated its 5,000th self-driving public ride in partnership with ride-hailing app Lyft. The companies have offered the self-driving transportation service along select routes in Las Vegas since May, with the vehicles being monitored by two safety personnel in the front seats. The service has been nearly unanimously praised by riders, with 96% stating they would use the autonomous ride service again. Aptiv, formerly Delphi Automotive, pulled in $3.7 billion in revenue in Q2 and earned $1.40 per share, with both figures topping estimates.

Starbucks Corporation (NASDAQ:SBUX)

Who Bought Shares: Group President & COO Rosalind (Roz) Brewer

How Many Shares Were Bought: 5,000 @ $54.04 per share

Date of the Transaction(s): August 20

It had been a year since a Starbucks Corporation (NASDAQ:SBUX) insider had purchased shares until Group President & COO Rosalind (Roz) Brewer did so on August 20. Ms. Brewer, who has the perfect family name for a coffee chain employee, joined Starbucks in 2017 after a successful decade-long run with Wal-Mart Stores, Inc. (NYSE:WMT) and its warehouse division Sam’s Club, which landed her on Fortune’s list of the 50 Most Powerful Women in Business in 2016. Ms. Brewer now has direct ownership of 7,302 Starbucks shares.

Those Starbucks Corporation (NASDAQ:SBUX) shares have slumped by nearly 10% in 2018 and have stalled over the past three years after a torrid run from 2009 to 2015. Piper Jaffray recently cut Starbucks to a ‘Neutral’ rating after pegging it a ‘Buy’ for three years, citing a lack of short-term catalysts and suggesting the stock will be no better than range-bound until trends improve in the U.S. In China, which is now home to the largest Starbucks location in the world, there is both optimism for growth and a dose of caution when it comes to potential protectionist measures. Starbucks is now trading at its lowest multiple in over a decade and has a 2.67% forward dividend yield.

Disclosure: None