Insider Buying Surges: Top Executives Invest $170 Million in BLDR, UNH, and MIDD

Insider buying activity has surged at three major companies, with top executives and influential insiders investing over $170 million. Board Chairman Paul S. Levy bought $55.4 million in Builders FirstSource (NYSE: BLDR) shares, and former CEO Stephen J. Hemsley spent $25 million on UnitedHealth Group (NYSE: UNH) shares. These purchases signal confidence in the future of these stocks and may be worth paying attention to when they buy again.

Insider buying activity has surged at three major companies, with top executives and influential insiders investing over $170 million. Board Chairman Paul S. Levy bought $55.4 million in Builders FirstSource (NYSE: BLDR) shares, and former CEO Stephen J. Hemsley spent $25 million on UnitedHealth Group (NYSE: UNH) shares. These purchases signal confidence in the future of these stocks and may be worth paying attention to when they buy again.

Since early May, insider buying activity has surged at three major companies. Together, top executives and influential insiders have invested more than $170 million of their own money, sending a strong signal of confidence in the future of these stocks [1].

Builders FirstSource (BLDR) has seen significant insider buying. Paul S. Levy, the Chairman of the Board of Directors, bought approximately $55.4 million worth of shares on May 8. Levy holds a crucial role in the company's corporate governance structure, overseeing the company and evaluating the performance of managers [1, 2]. Since Levy’s purchase, shares of BLDR are up around 20%, exceeding the S&P 500’s 11% gain over the same period. This suggests that Levy’s confidence in the company may be warranted.

UnitedHealth Group (UNH) has also seen substantial insider buying. Stephen J. Hemsley, now the CEO and Chairman of the Board of Directors, bought approximately $25 million worth of shares on May 16. Hemsley’s $25 million purchase comes just three days after the company appointed him as the new CEO. This indicates a strong belief in the company's future under his leadership. Hemsley’s previous tenure as CEO saw shares of UNH provide a total return of 360%, far outpacing the S&P 500 Index and the Health Care Select Sector SPDR Fund [1].

Middleby (MIDD) is the third company attracting significant insider attention. Director Edward P. Garden notably spent millions buying Middleby stock from May 9 to May 21, with purchases exceeding $93 million over that period. Garden holds an important position as a member of Middleby’s Board of Directors. His investment company, Garden Investment Management, owned an approximately 5% stake in Middleby as of March 31, which has moved up to approximately 6% with these recent purchases. Garden wants to center the company’s focus on its commercial foodservice segment [1].

These insider purchases suggest a high level of confidence in the future of these stocks. Investors should closely monitor these companies for future buying activity, as it may indicate further positive developments.

References:
[1] https://www.marketbeat.com/stock-ideas/insiders-spent-millions-on-these-3-stocks-over-the-past-2-months/
[2] https://www.investing.com/news/analyst-ratings/jefferies-raises-builders-firstsource-stock-price-target-to-148-on-resilient-margins-93CH-4142239