Major fund holder adds 4.6 million shares. CD&R Investment Associates, already a 10 percent owner, has been adding to its stake inBeacon Roofing Supply (BECN). Typically, when large investment funds increase their stake, it’s because they see the same value as other insiders. However, funds can also acquire board seats and otherwise push a company to make changes it might not otherwise—to the benefit of shareholders. On June 28th, the fund bought 4.6 million shares, a $158 million commitment. That increased its total stake to 10.5 million shares, a 78 percent increase over its...

Company CEO makes third buy in the past five weeks. Insiders continue to be buyers in the energy sector, even after oil prices have started moving higher. The latest example? Natural gas pipeline companyAltus Midstream Company (ALTM). On Thursday, CEO Clay Bretches picked up 15,000 shares of the company, paying nearly $55,000. It also increased his total stake by over 37 percent, a huge additional buy in. This follows up on buys of 20,000 shares on June 14th, and 20,000 shares back on May 21st. Altus is in the natural gas space, with a focus on gathering, processing and trans...

Big trade bets shares will rally in July.Shares ofAbbVie (ABBV) dropped nearly 15 percent on news that it was planning to acquire Botox maker Allergan. One trader is betting that the move was overdone. On Friday, over 3,200 contracts traded on the August 2, 2019 $80 call option. With 35 days left to expire and AbbVie prices just under $72, the option is a bet on an 11 percent rally in shares in the month of July. That kind of percentage move in a big-name company may seem like a stretch, but given how shares of AbbVie dropped heavily on the merger news, this option could easily make a bi...

Trader bets on more downside for tobacco giant. Tobacco companies have had a rough year, amidst long-term sales declines and a decision to pass on major investments in the growing cannabis industry. One trader sees some more downside, with a large put option trade onAltria (MO). On Thursday, over 9,500 contracts of the July 12th $49 put options traded, a 57-fold increase in volume on the option. This option, with shares at $48, is already in-the-money. So while it expires in 15 days, the option can be exercised as long as shares are under the $49 strike price. Any big down da...

Two insiders buy over $600,000 in shares.Insiders still remain incredibly bullish across the biotech and pharmaceutical space. On Wednesday, two insiders bought shares atBiohaven Pharmaceutical Holding Company (BHVN). CEO Vlad Coric bought 5,000 shares, shelling out just over $201,000. And director John Childs bought 10,000 shares, paying just over $403,000. This marks the first insider buys at the company in over two years, following insider sales last year in the $50-60 range. With shares in the low $40’s, the insider buys look like a response to the steep selloff in shares since th...

Traders bet on drop following big earnings beat.Shares ofMicron Technology (MU) surged over 14 percent on Wednesday thanks to a massive earnings beat. But some traders think the stock has rallied too much. On Wednesday, a large number of contracts with unusual options activity centered around put options on Micron, with many expiring on Friday, just two trading days away. One further out, the August 2nd $32 put options, has over a month to play out. This option had over 1,600 contracts on Wednesday. With shares of Micron hitting $37.50, the $32 puts imply a 15 percent pullback, essent...

Fund manager makes big buy after merger announcement in the sector. Money manager Keith Meister continues to be bullish atMGM Resorts International (MGM), the casino firm where he already owns 20 million shares and has a board seat as a director. On Tuesday, Meister picked up 380,651 additional shares, at a cost of about $10.59 million. This news comes after a big announced merger in the gaming space between Eldorado Resorts and Casears Entertainment. Typically, casinos can be a bit volatile, as many folks scale back plans to gamble during times of economic stress. And while gam...

Insiders buy millions of shares of genetic disease research firm. Insiders continue to be bullish on the pharma and biotech space at current prices. One of the latest buys is inStoke Therapeutics (STOK). RWT Investments, a partnership that already owns more than 10 percent of shares, picked up 555,556 shares last week, increasing their stake by $10 million. Then, this week, another big insider trade occurred. Director Seth Harrison bought 1,388,889 shares via his holding company, Apple Tree Partners IV. This increased his stake to 17.7 million shares and represents a $25 millio...

Airline carrier may see big drop in shares.A large bet has been made that shares ofDelta Airlines (DAL) will drop in the coming months. On Tuesday, nearly 3,000 contracts of the December 2019 $45 put options traded. With shares of the airline around $56.50, this is a bet on shares dropping by 20 percent between now and the end of the year. The airline industry has fared well lately, and oil prices have been slow to rally into their usual summer season pattern this year. The trade could be a bet on slower economic growth, which tends to impact travel and tourism more heavily than average....

Hardware and construction equipment company may be in for a big drop. A large bet has been made that shares ofFastenal (FAST) will decline 25 percent by January 2021. On Monday, over 2,000 contracts of the January 2021 $25 put options contracts had been traded, against an open interest of 142, representing a 14-fold surge in volume. This bet, with shares currently at $32.50, would need to see shares decline at least 25 percent before paying off. With Fastenal’s business in construction and manufacturing supplies and equipment, the company is a solid way to bet for global growth. T...