The U.S. stock market closed slightly higher on Tuesday, but amidst the general market activity, a few notable insider trades caught the attention of investors. When insiders, such as company executives or major shareholders, purchase shares, it often signals their confidence in the company’s future prospects or indicates they believe the stock is undervalued. While not the sole factor to consider when making investment decisions, insider purchases can lend weight to a positive outlook on a company. Here are a few noteworthy insider purchases from Tuesday’s trading:
Weyerhaeuser
Albert Monaco, a director of Weyerhaeuser Company (WY), acquired 31,500 shares at an average price of $31.38, totaling approximately $988,376. This purchase comes on the heels of Weyerhaeuser reporting lower-than-expected second-quarter sales on July 25th. Weyerhaeuser is a global leader in forest products, operating in various aspects of the industry, from timber harvesting to wood product manufacturing.
El Pollo Loco
Biglari Insurance Group Inc., a 10% owner of El Pollo Loco Holdings, Inc. (LOCO), purchased 344,247 shares at an average price of $13.20, representing a total investment of around $4.5 million. This purchase follows El Pollo Loco’s strong quarterly earnings announcement on August 1st. El Pollo Loco operates and franchises a significant chain of fast-casual chicken restaurants across the United States, known for its flavorful Mexican-inspired cuisine.
Herbalife
Juan Miguel Mendoza, a director of Herbalife Ltd. (HLF), bought 10,000 shares at an average price of $8.72, totaling approximately $87,200. This purchase occurred after Herbalife reported lower-than-expected second-quarter revenue on July 31st. Herbalife is an international nutrition company, selling a wide range of health and wellness products through a direct-selling model in 95 markets worldwide.
While insider purchases can indicate a positive outlook for a company, investors should always conduct thorough research and consider multiple factors before making any investment decisions.
