Insiders have access to real-time information on their companies and often also have a wealth of experience and knowledge to help them evaluate their firms’ prospects. If they are buying company stock, it’s generally worth taking a closer look.
In this report, we are going to highlight some insider buying at Mueller Industries Inc (MLI:US). Mueller is a leading manufacturer of copper, brass, aluminum, and plastic products. Its products are used in a wide range of industries, including the construction, transportation, and energy industries. The company is listed on the New York Stock Exchange and currently has a market capitalization of $2.9 billion.
Mueller Industries Inc: Insider Buying
Our data shows that on October 21, board member Gary Gladstein bought 11,399 MLI shares at a price of $47.71 per share. This trade cost the insider $543,846 and increased his holding to 133,251 shares.
Mr. Gladstein has an interesting background. Previously, he served as Chairman of the Board of Directors at Mueller Industries between 2013 and 2015. Meanwhile, between 1985 and 1999, he was Partner and COO at Soros Fund Management. Currently, he is an independent investor and consultant. Given his background, he is likely to have a good understanding of the company’s intrinsic value.
What stands out about this trade from Mr. Gladstein is its size. Our records show that this trade represents the largest insider purchase at Mueller since 2011. The fact that the insider has spent over $500,000 on MLI shares suggests that he is confident the stock is going higher.
Favorable Market Conditions
Mueller Industries’ most recent earnings were strong.
For the third-quarter of 2021, net sales came in at $982.2 million versus $619.1 million a year earlier. Meanwhile, operating income came in at $233.4 million versus $69.2 million a year earlier. Earnings per share for the period amounted to $3.01, up 296% year on year.
“Our strong financial results were driven by continued favorable market demand and our teams’ exceptional operating performance in the face of industry-wide labor and supply constraints and rising costs,” commented CEO Greg Christopher.
Looking ahead, the group said that it expects current market conditions to continue for the foreseeable future. “Building construction demand remains solid, and backlogs in most businesses continue to build,” noted Mr. Christopher.
In light of these results, and the positive outlook, we see the insider buying here as a bullish indicator.