2022 has been packed full of interesting trades and market events, from Elon Musk’s Tesla fire sale to another meme stock boom.
2iQ provides daily insider buying reports of some of the most important insider trades – but which ones rank the most intriguing to track?
In this blog we’re rounding up some of the most significant and profitable trades from the past year, and why those buys are worth monitoring going forward.
Uber Technologies Inc (UBER:US)
The value of any insider transaction is often impacted by the trader’s position in a company. In the instance of this trade, a CEO of a global industry leader making a massive investment requires a closer look.
In May 2022, 2iQ Analysts examined a huge insider buy at mobility and food delivery provider Uber:
CEO Dara Khosrowshahi bought 200,000 UBER shares for $26.73 per share on May 6, 2022. The insider paid around $5,300,000 for this trade, increasing their holding by around 16%.
This was the second multi-million dollar investment by the CEO in 12 months that we had reported on, indicating Khosrowshahi felt Uber was undervalued in the market.
The numbers support this, as UBER’s price has increased by over 3% – rising from the trade date to now, with a high point of over $33.1 in September.
Keep your eyes on Uber and Khosrowshahi’s trades over the next few months as the market continues to return to normal post-pandemic, with labor shortages easing up.
Coinbase Global (COIN:US)
Crypto has had a tumultuous 2022, and its future is still uncertain to even the savviest of investors.
That said, on May 13, 2022 Coinbase Co-Founder and board member Fred Ehrsam bought 706,554 COIN shares for $70.77 per share.
This trade cost Ehrsam over $76,800,000.
Size isn’t everything, however, as we’re particularly interested in Ehrsam’s extensive investment background. He’s a Managing Partner and Co-Founder of crypto-focused investment firm Paradigm and has made very timely sales of COIN in the past.
For the moment, this looks like an oddly timed trade, but we advise monitoring this insider and Ehrsam’s trade over the coming months as it likely swings back and forth in value.
Chipotle Inc (CMG:US)
We often place emphasis on insiders with substantial investment backgrounds in their respective industries. Not only do they have a deep understanding of their companies, but also considerations of projections of how their share price might perform.
Back on May 18, 2022, a board member of Chipotle, Gregg Engles, bought 300 CMG shares at $1,266.37 per share. This cost the insider $381,152 and increased their holding by 64%.
Engles is the Founder and Managing Partner of Capitol Peak Partners, a North American consumer-focused capital investment firm. Engles likely has a stronger understanding of Chipotle's intrinsic value given his background.
This is evidenced by a nearly 10% stock value increase since Engles invested in CMG. The stock is currently valued at around $1,396, meaning that the May investment is likely worth nearly $418,000.
We flagged this trade as bullish back in May – don’t miss Engle’s next move.
United Airlines Holdings Inc (UAL:US)
The travel industry has bounced back, with airline travel companies once again attracting.
United Airlines is one of the largest carriers in the world and earlier this year we reported on a seismic insider buy.
Edward Shapiro, a director of United Airlines Holdings, bought 100,000 UAL shares at an average price of $42.36 per share between June 2 and June 13, 2022. The insider paid just over $4,100,000 for this transaction.
Shapiro boasts a career spanning over 20 years at investment firms which further increases our interest in this trade.
With the aviation industry finally back on the mend and the company’s strong outlook, we believe this trade could be one to watch.
Want more noteworthy insider trades from 2022? Check these 2iQ reports:
Follow the 2iQ blog for more roundups.