Market News

This Insider Bought Beacon Stock Worth $5.99M Just Days before Results

Story Highlights

A corporate insider bagged $5.99 million worth of BECN stock last week. The insider activity spiked investors’ interest and the stock inched up 0.7% on July 29.

Last week, CD&R Boulder Holdings, L.P. bought shares of Beacon Roofing Supply Inc. (NASDAQ: BECN) worth $5.99 million. This attracted investors’ attention and shares of Beacon rose 0.7% to close at $60.02 on Friday.

Beacon is a distributor of roofing materials and complementary building products. It is slated to report its third-quarter earnings results on August 4. Interestingly, the company surpassed earnings estimates in the last four quarters.

According to an SEC filing, CD&R Boulder Holdings, an affiliate of investment firm Clayton, Dubilier & Rice LLC, lapped up 103,931 shares of Beacon at $57.73 per share on July 29. CD&R Boulder Holdings, L.P. now holds 14,859,579 shares of Beacon.

According to TipRanks, which also provides a comprehensive list of daily insider transactions, various corporate insiders have bought and sold BECN stock in the last five months. A pictorial representation of these transactions is provided below:

Insider Confidence Signal is Neutral on BECN

TipRanks’ Insider Trading Activity tool shows that insiders are currently Neutral on Beacon, even though corporate insiders brought BECN shares worth $5.3 million in the last three months.

Interestingly, TipRanks also provides a list of hot stocks that boasts of either a Very Positive or Positive insider confidence signal.

BECN Stock Has a Moderate Buy Rating

According to TipRanks, the Street is cautiously optimistic on the stock and has a Moderate Buy consensus rating based on five Buys and six Holds. BECN’s average price forecast of $67.10 implies 11.8% upside potential to current levels.

TipRanks data shows that financial bloggers are 100% Bullish on BECN, compared to the sector average of 68%. Meanwhile, hedge funds are Very Positive about the stock, as they bought 179,600 shares of BECN stock in the last quarter.

Concluding Thoughts

As of now, corporate insiders are seen taking advantage of the company’s weak stock price, which has fallen 0.9% in the past three months. The recent insider activity signals that this could be the right time to gain exposure to the stock that has upside potential of over 11.8%.

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