A director acquired more than 37.9 million Bausch Health shares at $6.35 to $9.00, costing almost $333.7 million. Most of those Bausch Health shares were sold by Carl Icahn and affiliates, leaving the buyer with up to over 70.7 million shares, more than 19% ownership. The Bausch Health purchase lifted the stock nearly 20% from a month ago, while analysts maintain a consensus 12-month price target of $7.08. A 10% owner, CD&R Channel Holdings II, bought about 1.9 million Resideo shares for over $55.8 million. A beneficial owner built a stake in a producer of technology products. A chief executive and other officers of a recent spin-off also made a large insider purchase.
The buyer's stake is up to more than 70.7 million shares, or more than 19% of the provider of generic pharmaceuticals, medical devices, and over-the-counter products. This huge insider buy boosted the stock, which is up 19.9% from a month ago, despite pulling back somewhat in the past week. Analysts don't currently see any upside potential in the next 12 months, given their consensus price target of $7.08. Only one of seven analysts who cover the stock recommends buying shares.
A well-known adage reminds us that corporate insiders and 10% owners really only buy shares of a company because they believe the stock price will rise and they want to profit from it. Thus, insider buying can be an encouraging signal for potential investors. This is all the more so during times of uncertainty in the markets, and even when markets are near all-time highs.
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