Tilman Fertitta, Carl Icahn, and More Insiders Return to the Buy Window

Since the beginning of April, market volatility has spiked, due largely to uncertainty about inflation, interest rates, upcoming quarterly reports, and mostly the impact of tariffs and a global trade war on the U.S. economy. Still, we have seen some notable insider purchases in the past week, many of them by return buyers and beneficial owners.

An outgoing chief executive made another big purchase of shares, and a meme stock CEO picked up some shares after announcing a cryptocurrency plan. Let’s take a quick look at these notable transactions of the past week.

Is Insider Buying Important?

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.

Note that the next earnings-reporting season will begin soon, and many insiders will be prohibited from buying or selling shares. Below are some of the most notable insider purchases that were reported recently, starting with the largest and most prominent.

Wynn Resorts

• Buyer(s): 10% owner Tilman Fertitta
• Total shares: 400,000
• Price per share: $67.62 to $70.40
• Total cost: over $27.8 million

This billionaire businessman and television personality also acquired almost $1.4 million worth of Wynn Resorts Ltd. (NASDAQ: WYNN) shares in March. His stake is now up to 13.0 million shares.

CNBC’s Jim Cramer also is a big fan of this Las Vegas-based casino resort operator, and its fourth-quarter results exceeded Wall Street expectations on the top and bottom lines. After the report, the stock surged, but with the market chaos since, the share price is down 1.5% since the report. And the stock is down 16.7% year to date.

Analysts have a consensus price target of $111.92, which is greater than the 52-week high of $107.81. Yet, their mean target price represents upside potential of 56.0% in the next 12 months. All but two of 17 analysts who cover the stock recommend buying shares.

Lions Gate Entertainment

• Buyer(s): 10% owner Liberty 77 Capital
• Total shares: over 2.6 million
• Price per share: $6.45 to $6.95
• Total cost: more than $17.8 million

This same buyer has been scooping up Lions Gate Entertainment Corp. (NYSE: LGF-B) shares, both A shares and B shares, since last June. After the transaction above, its B-share stake is up to more than 9.7 million shares.

The motion picture and television producer and distributor’s most recent quarterly results exceeded Wall Street estimates, due in part to record earnings from licensing. The share price is 1.3% higher than when the report was posted but down 6.0% year to date. It was last seen still within the purchase price range above.

Analysts anticipate 56.5% upside in the coming year to their consensus price target of $10.67. Note that the highest price target is up at $15. The consensus recommendation of those analysts is to buy shares.

Staar Surgical

• Buyer(s): 10% owner Broadwood Partners
• Total shares: over 845,200
• Price per share: $14.97 to $16.58
• Total cost: more than $13.6 million

This buyer has been buying shares since December and returned to the buy window and boosted the stake in Staar Surgical Co. (NASDAQ: STAA) to over 13.3 million shares.

This maker of implantable lenses for the eye announced leadership changes last month, including a new chief executive. Earlier in the year, the company announced layoffs. The stock tumbled after the most recent earnings report and now is 36.3% lower than at the beginning of the year. Shares were last seen trading within the buyer’s purchase price range.

Analysts anticipate 23.5% upside in the next 12 months to their $18.67 consensus price target. Yet, only three of 13 analysts who cover the stock recommend buying shares. Stephens maintained its Equal Weight rating last month.

GameStop

• Buyer(s): CEO Ryan Cohen and another director
• Total shares: 505,000
• Price per share: $18.15 to $19.39
• Total cost: almost $10.8 million

In late March, GameStop Corp. (NYSE: GME) reported that it would invest some of its cash pile in bitcoin. The specialty retailer also issued $1.5 billion in convertible notes to raise funds for this acquisition plan. Shares tumbled on the news, and the stock is now down 22.4% since the start of the year but was last seen well above the purchase price range above.

There is no consensus price target, and the only target on record is less than the current share price. That analyst has an Underperform rating.

Note that Cohen’s stake is up to more than 37.3 million shares. That is not enough to make him a beneficial owner, as there are about 447 million GameStop shares.

Asana

• Buyer(s): CEO Dustin Moskovitz
• Total shares: about 675,000
• Price per share: $13.00 to $15.16
• Total cost: almost $9.6 million

With its most recent earnings report, San Francisco-based Asana Inc. (NYSE: ASAN) also announced Moskovitz’s retirement. The share price plunged afterward and has yet to recover. The stock is down 16.2% in the past month. A year ago, the price was fractionally higher than the current price, which is just above the buyer’s purchase price range.

Analysts see just 3.3% upside in the coming year, given their $15.63 consensus target price. Out of 19 analysts who cover the stock, only five of them recommend buying shares. J.P. Morgan recently reiterated its Underweight rating, and Morgan Stanley maintained an Equal Weight rating.

Note that the outgoing chief executive bucked the trend, building his stake recently while two officers and a director were selling shares last month.

CVR Energy

• Buyer(s): 10% owner Carl Icahn
• Total shares: about 572,900
• Price per share: $16.11 to $18.12
• Total cost: almost $9.5 million

This renowned American financier and investor has been on a buying spree for the past month or so and now has a CVR Energy Inc. (NYSE: CVI) stake of around 69.1 million shares.

This Texas-based refiner reported a smaller-than-expected net loss for the fourth quarter. Revenue exceeded Wall Street estimates as well. The share price rose afterward but has since given up that gain. Still, the stock was last seen trading within the purchase price range above. Analysts anticipate upside of 18.2% in the next year to their consensus target price of $19.50. But none of them recommend buying shares.

Note that Icahn also just acquired more than 12,400 shares of fertilizer maker CVR Partners L.P. (NYSE: UAN).

And Other Insider Buying

In the past week or so, some insider buying was also reported at the following:

Six Apparel and Footwear Companies That Could Overtake Nike

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