Investors often pay attention when company executives buy their own stock. That’s because executives know their businesses better than most investors. And when they spend their own money buying shares, it can be a sign that they believe the stock is cheap or that the company has a good future.
Pfizer saw several insiders buy shares following its latest earnings report. CEO Albert Bourla, who bought Pfizer stock on the open market for the first time since becoming CEO in 2019, picked up 38,000 shares at $26.34 each on August 12.
Director Ronald Blaylock bought 39,231 shares at $25.46 each, while director Mortimer Buckley bought 37,632 shares at $25.52 each. Together, they spent about $2 million.
The company reported better-than-expected revenue and adjusted earnings. Strong sales of Eliquis, its blood thinner, helped drive the results. Pfizer’s cancer business also continued to grow. However, investors still have concerns. Pfizer’s full-year outlook was weaker than Wall Street expected, even though the company raised its revenue forecast because of stronger sales from its non-COVID products.
Berkshire Insiders Bought Shares
Insiders are also buying shares of Berkshire Hathaway.
CFO Charles Chang bought two Class A shares for about $1.5 million. Each share cost roughly $765,000. Berkshire’s General Counsel Michael O’Sullivan also bought shares. He purchased 488 Class B shares for about $250,000. These purchases are especially interesting because Berkshire does not give stock-based compensation to its employees, including top executives. That means Chang and O’Sullivan had to use their own money if they wanted to buy Berkshire shares.
Berkshire’s stock has not performed particularly well this year. Both its Class A and Class B shares are up only slightly this year, while the S&P 500 is up around 14%. That may be one reason the company’s executives see value.
The company is facing several problems, including higher costs, weaker grocery sales, and financial pressure on lower-income shoppers.
Albertsons’ stock fell sharply after the report. But instead of selling, several company executives bought shares. CEO Susan Morris was one of the biggest buyers. On July 28, she bought more than 39,000 shares in two transactions. She paid $11.46 per share for 20,277 shares and $11.38 for another 19,132 shares. Executive Vice President Thomas Moriarty bought 170,500 shares at $11.51 each. CFO Sharon McCollam also bought 9,000 shares at $11.48 each.
When several senior executives buy shares around the same time, investors often see it as a sign that management believes the stock has become too cheap.
The insider buying does not change the fact that Albertsons is facing some serious challenges.
The company reported $24.94 billion in revenue in its latest quarter. That was slightly higher than the previous year and better than analysts expected. However, adjusted earnings came in at 42 cents per share, which was 12 cents below Wall Street’s forecast.
The company also lowered its expectations for the full year. Albertsons now expects fiscal 2026 earnings of between $1.75 and $1.85 per share.
The insider purchases at Pfizer, Berkshire Hathaway and Albertsons are interesting because executives are putting their own money into their companies. At Pfizer, the biggest signal is CEO Albert Bourla’s first open-market purchase. At Berkshire, executives are buying shares despite the company’s weaker performance compared with the broader market.
At Albertsons, several executives are buying after a sharp drop in the stock and disappointing earnings. None of these purchases guarantees that the stocks will rise. However, insider buying can be a useful signal for investors. When executives put their own money on the line, it suggests they may believe the market is being too negative about their companies. It can be a major reason for investors to dig deeper into the company.
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