We give a roundup of insiders who have recently increased their holdings by significant percentages each month.
In our last entry, we revisited Jackson Financial Inc, Keywords Studios PLC, and Sunnova Energy International Inc. This time around, we have a real mix of companies.
Why Should You Track Insider Holding Percentages?
Tracking an increase in an insider’s holding can be a profitable decision.
For example, imagine two insiders purchasing stock, both of whom paid $10,000, but one boosted their holding by 50% and the other by 10%. Normally, a 50% rise would be regarded as more bullish.
The four examples below demonstrate significant increases in insider holdings.
Boeing Co (BA:US)
Boeing is a globally recognised commercial aeroplane manufacturer. Defense, space, and security equipment are also produced by the company. It has a market value of $113 billion and is traded on the New York Stock Exchange.
Chairman Lawrence Kellner bought 5,000 BA shares for $208.91 on February 14, 2022. The insider paid around $1 million for this trade, which raised his holding by around 200%.
Kellner has extensive expertise in both the firm and the industry. He has been a member of Boeing's board since 2011 and has served as Chairman since 2019. Because of his experience, he is likely to have a strong grasp of his company's potential.
Boeing is also on course to continue bouncing back from the pandemic, as the conditions for commercial air travel improve.
Based on the promising outlook for the commercial flights industry and the large scope of the Chairman’s activity, we see this insider buying as a bullish sign.
For more analysis of Kellner’s purchase, read the full 2iQ report.
Troax AB (TROAX:SS)
Troax is a Swedish firm that specialises in adaptable safety solutions for people, property, and processes. Warehouse partitioning, business partitioning, machine guarding systems, and storage solutions are among the company’s products.
The company has a market capitalisation of SEK 15.090 billion and is listed on the OMX Nordic Exchange Stockholm.
Anders Mörck, Chairman of Troax, purchased 2000 TROAX shares at a price of SEK 316.98 per share on February 7, 2022. This cost Mörck around SEK 633,960, increasing his holding to 4,000 shares.
This activity is interesting, not just because it doubled the insider’s holding percentage. Mörck, who has been Chairman since 2020, has a history of making well-timed trades according to our data.
For example, in March 2021, the insider purchased stock while it was trading near SEK 248. The stock has since risen to a high of SEK 469. Our model assigns a long-term Trading IQ of 109 to the insider, which is a great score.
Based on Mörck’s high trading IQ, he clearly expects TROAX to bounce back in value. We see his activity here as bullish.
McDonald’s Corp. (MCD:US)
McDonald's is the world's largest fast-food franchise, having stores all over the world. The corporation has a market value of $183.87 billion and trades on the New York Stock Exchange.
In March 2022 2iQ reported on Cathy Engelbert, an Independent Director of McDonald's Corp., who purchased 1,000 MCD shares at a price of $244.18 per share. This trade was worth around $244,180 in total.
Engelbert now owns 2,041 MCD shares, doubling her holding in McDonald’s. This activity works in tandem with her vast financial background, having been the first female CEO of one of the ‘Big Four’ professional services organisations, Deloitte. Engelbert is also the Women's National Basketball Association's (WNBA) first Commissioner.
We see the insider's behaviour here as optimistic, based on her history, superior investment understanding, and the large increase of her MCD holdings.
APA Corp. (APA:US)
APA Corp, an energy holding business, operates multiple territories through its subsidiaries, Apache Corporation and APA Corporation Suriname. These subsidiaries operate in the United States, Egypt's Western Desert, the North Sea of the United Kingdom, and off the coast of Suriname.
APA has a market capitalization of $14.3 billion and is traded on the NASDAQ Global Select Market.
Chansoo Joung, a board member, purchased 40,000 APA shares at $32.92 per share. This cost Joung around $1.3 million, increasing his holding to 65,285 shares. This is a large holding increase of 158%.
Mr. Joung, who joined the board in 2011, has spent practically his entire career in the investment management business evaluating energy firms, adding extra credibility to his trade here.
He was formerly a partner and senior adviser at Warburg Pincus LLC, where he was responsible for making and overseeing countless investments in the energy sector across all sectors.
His impressive background has scored him a short-term Trading IQ of 90 according to our model, suggesting that he’s an opportunistic seller. In light of the size of his trade, we see it as bullish.
Other holdings increases of recent note include: