The 25 Biggest Insider Purchases in October

Insider purchases consistently outpaced insider sales during much of October, the first time that has happened over a minimum two-week period since January 2016. With the stock market having one of its worst months since the great recession (the Nasdaq for example, slid by 9% during October, its worst month since November 2008), it’s not surprising that more and more executives were buying cheap shares and hanging on to their discounted ones.

Investors appear to be wary of the possibility that the U.S and global economy has peaked, which could instantly make a lot of stocks look overvalued if growth projections start tapering off. The U.S/China trade war continues to plod along as well, which prompted the IMF to cut its 2019 growth forecasts for both countries in early-October.

Insider trading represents an important gauge of the market’s overall sentiment, as demonstrated by the noteworthy October downtrend when it came to insider selling. Even more importantly, insider trading (namely insider buying) provides valuable insights when it comes to individual companies. Whereas it’s hard to draw conclusions from insider selling of any kind, insider purchases send a clear signal that one or more members of a company’s management team believe shares to be undervalued. And history has shown that stocks which have experienced such insider purchases outperform the market over the following 12-month period.

Alongside our tracking of insider trading activity, we also track the top consensus picks of the best performing hedge funds each quarter and share them exclusively with our newsletter subscribers.

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Below and on the following pages, we’ve ranked the 25 Biggest Insider Purchases in October, all but one of which topped $100,000 in value. We’ll detail those transactions and check out what may have prompted the insider buying activity in each stock. Note that the list does not include insider purchases made through trading plans or which constitute indirect purchases of stock (usually made through trusts or other investment vehicles). Insider purchases made by large shareholders (often hedge funds which have a seat on the company’s board) likewise aren’t considered.

25. Arlington Asset Investment Corp (NYSE:AI)

Who Bought Shares: President and CEO J. Rick Tonkel Jr.

How Many Shares Were Bought: 10,000 @ $8.79 per share

Date of the Transaction(s): October 3

Arlington Asset Investment Corp (NYSE:AI) shares fell by over 10% between September 26 and October 2, primarily due to the stock going ex-dividend on September 27, which prompted this insider purchase by the company’s leading executive. Arlington Asset’s shares carry a ridiculous forward yield of 17.84%, despite a 31.8% cut to the company’s quarterly dividend payments in June.

24. Mueller Industries, Inc. (NYSE:MLI)

Who Bought Shares: Director Terry Hermanson

How Many Shares Were Bought: 4,000 @ $25.04 per share

Date of the Transaction(s): October 25

Mueller Industries, Inc. (NYSE:MLI) shares have fallen by nearly 25% since late-August and hit a 52-week low on October 23, just ahead of this insider purchase of 4,000 shares. Mueller’s Chairman and CEO also reported purchasing 7,000 shares on the same date, though they are indirectly owned through trusts. Mueller’s Q3 results released on October 23 didn’t inspire much investor confidence, as diluted earnings per share of $0.35 missed the Zack’s consensus estimate by $0.14.

23. Huntington Bancshares Incorporated (NASDAQ:HBAN)

Who Bought Shares: President, CEO & Chairman Stephen D. Steinour

How Many Shares Were Bought: 8,643 @ $13.48 per share

Date of the Transaction(s): October 25

Huntington Bancshares Incorporated (NASDAQ:HBAN) shares fell to 10-month lows on October 24, a day before the company’s leading executive purchased 8,643 shares. Shares have rebounded by 5% since then, as investors have had more time to digest the company’s third quarter earnings report, covering a quarter which Mr. Steinour described as the best of his career when it came to returns on common tangible equities. Huntington’s tangible book value stood at $7.06 at the close of Q3, a 3% increase year-over-year.

22. TriState Capital Holdings Inc (NYSE:TSC)

Who Bought Shares: Director James J. Dolan

How Many Shares Were Bought: 6,000 @ $24.34 per share

Date of the Transaction(s): October 26

TriState Capital Holdings Inc (NYSE:TSC) shares are still in the green for the year but have tumbled by over 15% since the beginning of September. Q3 revenue of $41.5 million missed estimates by $2 million, while the bank’s efficiency rating for the quarter stood at 52.86%, down from 54.81% year-over-year. Average loans were up by 21% to $4.59 billion year-over-year, while average deposits grew by 27% to $4.57 billion.

21. JPMorgan Chase & Co (NYSE:JPM)

Who Bought Shares: Director Mellody L. Hobson

How Many Shares Were Bought: 1,150 @ $108.94 per share

Date of the Transaction(s): October 19

This was the first case of insider buying at JPMorgan Chase & Co (NYSE:JPM) in five months, coming just ahead of the stock hitting 2018 lows on October 24. JPMorgan is preparing to expand nationally after years of being secretly held back from opening branches in new states, which it hasn’t done in a decade. According to Bloomberg, enforcement of Obama-era regulations that dated back to 2012 were the culprit, regulations which have since been rolled back by the Trump administration.

20. Barings BDC Inc (NYSE:BBDC)

Who Bought Shares: CEO Eric J. Lloyd

How Many Shares Were Bought: 14,500 @ $10.07 per share

Date of the Transaction(s): October 2

A large quantity of insider purchases of Barings BDC Inc (NYSE:BBDC) shares have been made over the past five weeks, topped by this one made by the company’s CEO. After closing above $12 on their first day of trading at the end of July, Barings’ shares trended downward over the following two months and have hovered around the $10 mark since. Barings announced a raise to its quarterly dividend in October, hiking it to $0.10 from $0.07, which currently yields right about 4% annually.

19. Huntsman Corporation (NYSE:HUN)

Who Bought Shares: EVP & CFO Sean Douglas

How Many Shares Were Bought: 7,500 @ $21.47 per share

Date of the Transaction(s): October 31

Huntsman Corporation (NYSE:HUN)’s EVP and CFO purchased 7,500 shares in two transactions made on the final day of October. Huntsman shares have lost over 30% of their value in 2018 and like many other stocks, fell to a 52-week low in late-October. The chemicals company is actively trying to find a buyer for its 53% stake in Venator Materials PLC (NYSE:VNTR), which it spun off last year. Huntsman would like to wrap the sale process up swiftly so it can focus on buying back more of its cheap shares.

18. Flex Ltd (NASDAQ:FLEX)

Who Bought Shares: EVP, General Counsel David Scott Offer

How Many Shares Were Bought: 27,027 @ $7.48 per share

Date of the Transaction(s): October 30

Flex Ltd (NASDAQ:FLEX) shares have lost over half of their value this year, with the latest blow coming near the end of last month when it was announced that Nike Inc (NYSE:NKE) and Flex would close their footwear manufacturing facility in Mexico. Flex is also approaching a transition period, as CEO Michael McNamara, who’s headed the company for a dozen years, is slated to retire at the end of 2018.

17. Soligenix, Inc. Common Stock (NASDAQ:SNGX)

Who Bought Shares: Director Mark E. Pearson

How Many Shares Were Bought: 170,000 @ $1.16 per share

Date of the Transaction(s): October 17

In the span of less than two weeks in October, Soligenix, Inc. Common Stock (NASDAQ:SNGX) shares lost just under half of their value, which spurred two different insiders to buy some of them around the middle of the month. Soligenix is currently in phase 3 testing of SGX301, for the treatment of cancerous skin lesions in patients with cutaneous T-cell lymphoma (CTCL). Results from the phase 2 trial of the drug showed it to be safe and effective, with 58.3% of patients enjoying a significant response.

16. PolyOne Corporation (NYSE:POL)

Who Bought Shares: Director Robert E. Abernathy

How Many Shares Were Bought: 10,000 @ $30.64 per share

Date of the Transaction(s): October 25

PolyOne Corporation (NYSE:POL) shares lost one-third of their value between September 21 and October 24, which spurred four different insiders of the company to buy shares between October 25 and October 29. The biggest of those transactions was the 10,000 shares purchased by director Robert E. Abernathy, which lifted his stake to 11,593. The polymer materials company revealed last month that its construction end market suffered an abrupt slowdown in September, which has persisted into Q4.

15. CAPSTEAD Mtg Co/SH (NYSE:CMO)

Who Bought Shares: Director Christopher W. Mahowald

How Many Shares Were Bought: 75,000 @ $6.76 per share

Date of the Transaction(s): October 29

The director was one of several CAPSTEAD Mtg Co/SH (NYSE:CMO) insiders to purchase shares towards the end of October, which represented the first cases of insider buying at the company in five years. After trending down throughout September and October, the REIT’s shares took another sharp tumble near the end of October following the release of its Q3 results, which showed earnings of $0.04 per share, down from $0.09 per share earned in Q2.

14. EQT Corporation (NYSE:EQT)

Who Bought Shares: Senior Vice President and CFO Robert Joseph McNally

How Many Shares Were Bought: 15,800 @ $34.16 per share

Date of the Transaction(s): October 31

EQT Corporation (NYSE:EQT) is yet another stock that got hammered in October, losing 35% between the 16th and 29th of the month, which pushed it to 8-year lows. Third quarter adjusted earnings of $0.35 per share missed the consensus estimate by $0.07, while other negative catalysts have also dogged the stock, including the lowering of its production estimates for 2018 (to 1,460-1,480 bcfe from first quarter projections of 1,520-1,550 bcfe) and a $300 million hike in the natural gas company’s estimated well development capital expenditures, to $2.5 billion.

13. Conagra Brands (NYSE:CAG)

Who Bought Shares: President and CEO Sean Connolly

How Many Shares Were Bought: 14,184 @ $35.25 per share

Date of the Transaction(s): October 12

Conagra Brands (NYSE:CAG)’s top executive purchased shares in the middle of October, about a week after they hit 52-week lows. EVP and CFO David S. Marberger also bought 2,836 shares on the same day, while Director Thomas K. Brown bought 7,092. Conagra completed its acquisition of Pinnacle Foods in late-October, adding brands like Earth Balance, Vlasic, Glutino, and Bird’s Eye to its portfolio, though there is some concern over the lagging sales of some of Pinnacle’s brands.

12. IBM Common Stock (NYSE:IBM)

Who Bought Shares: Director Sidney Taurel

How Many Shares Were Bought: 4,311 @ $115.02 per share

Date of the Transaction(s): October 31

In three transactions made on Halloween, the IBM Common Stock (NYSE:IBM) director bought a total of 4,311 shares of the company, lifting his stake to 23,798 shares. IBM endured a brutal October, starting the month at an even $153 per share and ending it at just $115.43, a 5-year low for the stock. IBM raised eyebrows at the end of October when it paid a 60% premium to buy Red Hat Inc (NYSE:RHT) for $34 billion, a move that will saddle the tech giant with piles of debt, but which will also provide a much-needed boost to its cloud endeavors.

11. Arvinas Inc. (NYSE:ARVN)

Who Bought Shares: President and CEO John G. Houston

How Many Shares Were Bought: 30,000 @ $16.00 per share

Date of the Transaction(s): October 1

Arvinas Inc. (NYSE:ARVN) President and CEO John G. Houston purchased 30,000 shares during his company’s initial public offering, which kicked off on September 27, raising his position to 772,860 shares. The early-stage biopharmaceutical company is focused on developing protein degradation treatments that could be used to combat challenging forms of cancer and other diseases.

10. CROWN CASTLE In/SH SH (NYSE:CCI)

Who Bought Shares: Director Anthony J. Melone

How Many Shares Were Bought: 5,478 @ $105.99 per share

Date of the Transaction(s): October 23

Mr. Melone was one of two CROWN CASTLE In/SH SH (NYSE:CCI) directors to buy shares of the company in October, joining Cynthia K. Christy-Langenfeld, who bought 900 shares on October 22. The wireless infrastructure company has already rebounded from its October swoon, pushing ever so slightly into positive territory for the year in the process. Crown Castle is estimating $4.70 billion in site rental revenue for fiscal 2018, which would be a $1.03 billion year-over-year increase.

9. VF Corp (NYSE:VFC)

Who Bought Shares: Director Juliana L. Chugg

How Many Shares Were Bought: 6,400 @ $77.60 per share

Date of the Transaction(s): October 25

The insider purchase by Ms. Chugg came one day after fellow VF Corp (NYSE:VFC) director Richard Carucci also bought shares of the company, 5,000 in total. VF Corp shares are still up by over 12% this year and have rebounded by 10% from their October lows. VF Corp is actively shaking up its portfolio, announcing earlier this year that it will spin off its Wrangler and Lee brands. It also recently sold its Reef brand to The Rockport Group for an undisclosed sum.

8. Citizens Financial Group Inc (NYSE:CFG)

Who Bought Shares: Director Charles John Koch

How Many Shares Were Bought: 14,000 @ $36.32 per share

Date of the Transaction(s): October 23

Citizens Financial Group Inc (NYSE:CFG) has been a relatively non-volatile stock throughout much of 2018, though one that’s gradually trended down for much of the year. CEO Bruce Van Saun is aiming to build a robust online and mobile platform for the financial services company, which included the launch of Citizens Access, an online savings account platform, earlier this year.

7. PacWest Bancorp (NASDAQ:PACW)

Who Bought Shares: CEO and President Matthew P. Wagner

How Many Shares Were Bought: 17,000 @ $39.01 per share

Date of the Transaction(s): October 29

In addition to the CEO’s October 29 share purchase, director John M. Eggemeyer III also added some 10,000 PacWest Bancorp (NASDAQ:PACW) shares to his portfolio on November 1. PacWest sank by 24% between mid-September and the end of October, as the company’s Q3 earnings that were released during that period ended up disappointing some investors with higher than expected operating expenses, though earnings of $0.94 beat estimates nonetheless.

6. KLX Energy Services (NASDAQ:KLXE)

Who Bought Shares: VP and General Manager Gary J. Roberts

How Many Shares Were Bought: 83,375 @ $31.26 per share

Date of the Transaction(s): October 25

The KLX Energy Services (NASDAQ:KLXE) executive purchased two large blocks of shares on October 25, totaling over 83,000 shares. Two other members of the company’s management team also bought shares of the oilfield services company around that time, which was spun off from KLX Inc (NASDAQ:KLXI) in September. KLX Energy Services operates over 35 facilities in shale basins like the Permian, Eagle Ford, and Bakken.

5. Allogene Therapeutics Inc (NASDAQ:ALLO)

Who Bought Shares: President and CEO David D. Chang

How Many Shares Were Bought: 40,000 @ $18.00 per share

Date of the Transaction(s): October 15

Allogene Therapeutics Inc (NASDAQ:ALLO)’s CEO was one of several insiders to buy shares during the company’s IPO in the middle of October. Those shares have been on fire over the past week, gaining more than 20%. Allogene currently has one treatment in phase 1 testing, that being its lead investigational product UCART19. It also has 16 other CAR T treatments in pre-clinical testing.

4. BlackRock, Inc. (NYSE:BLK)

Who Bought Shares: Director William E. Ford

How Many Shares Were Bought: 2,000 @ $409.59 per share

Date of the Transaction(s): October 17

This was one of two 2,000-share blocks purchased by the BlackRock, Inc. (NYSE:BLK) director during October, which lifted his position to 9,466 shares, 7,000 of which have been bought in the past five months. BlackRock shares hit a 52-week low on October 24 and are still down by 15% since the beginning of October. BlackRock CEO Larry Fink wasn’t particularly pleased with the asset manager’s Q3 results, which included having its lowest quarterly long-term net inflows ($10.6 billion) in two years.

3. Texas Instruments Incorporated (NASDAQ:TXN)

Who Bought Shares: Director Martin S. Craighead

How Many Shares Were Bought: 10,900 @ $91.70 per share

Date of the Transaction(s): October 25

A Texas Instruments Incorporated (NASDAQ:TXN) insider purchased shares of the company for the first time in six years on October 25 following a nearly 20% slide in the stock during the prior five-week period. Texas Instruments’ Q4 guidance issued on October 23 widely missed estimates, which contributed to the selloff in the tech space.

2. Allegiant Travel Company (NASDAQ:ALGT)

Who Bought Shares: President John Redmond

How Many Shares Were Bought: 11,000 @ $138.28

Date of the Transaction(s): October 27

Allegiant Travel Company (NASDAQ:ALGT)’s President also purchased an additional 12,000 shares in two transactions on October 31, giving him 108,125 shares. The airline company is building its own 680-room resort in Florida in an effort to upsell expensive hotel stays to its customer base. The market has been skeptical about the $420 million project, which is expected to break ground early next year, including its obscure Port Charlotte location.

1. Sarepta Therapeutics Inc (NASDAQ:SRPT)

Who Bought Shares: President and CEO Douglas S. Ingram

How Many Shares Were Bought: 16,695 @ $120.39 per share

Date of the Transaction(s): October 30

Topping our list of the 25 Biggest Insider Purchases in October is Sarepta Therapeutics Inc (NASDAQ:SRPT), whose leading executive purchased just under 17,000 shares at an average price of over $120 per share in two transactions made on October 30. Sarepta has been one of the biggest success stories of the year, gaining over 150% in 2018 and quickly recouping most of its October losses. Sarepta’s revenue jumped by 70% year-over-year in Q3 thanks to strong sales from DMD treatment Exondys 51.

Disclosure: None