Insider Cluster Buying: A Bullish Perspective on 3 Companies

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In the dynamic world of finance, insider trading serves as a barometer for market observers offering tantalizing glimpses into a company's trajectory. Last month witnessed a flurry of activity in the form of cluster buying, a phenomenon where three or more insiders within a company concurrently invest in their organization's stock. 

In this report, we analyze recent instances of cluster buying that occurred at NFI Group, Western Midstream Partners LP, and Africa Oil Corp. By examining the details of these transactions, we aim to provide insights into their implications for investors and stakeholders.

NFI Group Inc (NFI:CN)

With a current Market Cap of around 1.54 billion CAD, NFI Group Inc (NFI:CN) is a global leader in sustainable transportation solutions. The company recently witnessed significant insider cluster buying activity, signaling confidence in the company's future. Between March 3 and March 22, nine insiders bought NFI stock. Notably among them were:

  • CFO Micheal Stewart (6,044 NFI shares)

  • Vice President Micheal Pellaers (4,645 NFI shares)

  • Chairman Wai Ting Kei (1,768 NFI shares)

The nine insiders associated with this cluster amassed a substantial stock portfolio, investing around 964,745 CAD ($713,976) in NFI shares, which underscores their confidence in the stock's potential for growth. 

Notably, all nine insiders engaged in trading activities when the stock price ranged between 11.3 CAD to 12.31 CAD. Since the first buy on March 3, NFI stock has been up by almost 11.72%. 

Africa Oil Corp (AOI:CA)

Africa Oil Corp. (AOI:CA) is a Canadian oil and gas company with operations in Nigeria, West and South Africa, and Guyana. Publicly traded on the Toronto Stock Exchange, it holds a market capitalization of around $1.04 billion.

2iQ reported on the sizeable trading activity of three AOI insiders between February 28 and March 19

  • Senior Vice President Oliver Quinn (40,000 AOI shares)

  • Vice President Paul Martinez (24,500 AOI shares)

  • President/CEO Roger Morris Tucker (80,000 AOI shares)

In all, these insiders spent around CAD 313,295 ($230,899) on AOI stock. 

Africa Oil Corp also posted encouraging results for the full year of 2023. The company achieved its management targets for production and cash flow in Q4 & Full Year 2023, receiving $175.0 million in dividends from its shareholding in Prime. With a net income of $87.1 million for the year, the company initiated a share buyback program and CEO Roger Tucker expressed optimism for future growth.

Western Midstream Partners LP (WES:US)

Another company that saw its insiders stocking up was energy company Western Midstream Partners LP (WES:US), headquartered in The Woodlands, TX. The company plays a crucial role in midstream energy operations with a market cap of $13.5 billion.

2iQ’s insider transaction data shows that five insiders bought a substantial amount of WES stock between February 26 and March 6:

  • President and CEO Michael Ure (5,000 WES shares)

  • Board Member Lisa Stewart (5,000 WES shares)

  • Board Member Oscar Brown (7,000 WES shares)

  • Board Member David Schulte (800 WES shares)

  • Board Member Kenneth Owen (7,000 WES shares)

Combined, these insiders spent a total of $840,403 on WES shares.

All five insiders with extensive experience in finance collectively invested a total of $752,960 in WES shares. Their transactions occurred within a price range of $33.35 to $34.96. Following their trades, WES stock has surged by more than 5%.

In conclusion, cluster buying can be a valuable asset for identifying potential investment opportunities and can greatly assist in making informed financial decisions.Read more cluster buying reports on our 2iQ Blog Page.