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Insider Weekends: ICONIQ Makes A Brazen Purchase

  • September 24, 2022

Key purchases this week come from familiar names, especially with August J. Troendle (CEO of Medpace Holdings) making yet another large purchase totaling $62.49 million. This follows a series of purchases last week that totaled $57.2 million, which we mentioned in our Insider Weekends post last week. We also picked Medpace as our spotlight idea for our August 2022 Special Situations Newsletter, on account of insider purchases by Mr. Troendle this year. We added the stock to our watch list because we wanted to see a better entry price. With the recent pullback in the stock, it looks like we are getting there. These trades stood out because until January of this year, Mr. Troendle was a seller of Medpace stock. He waited just a little over six months to get out of the short-swing rule window before buying stock.

Norton LifeLock is yet another company that we’ve frequently discussed on InsideArbitrage, first adding it to our portfolio as part of the June 2021 Special Situations Newsletter, and later exiting the position in November 2021. When exiting the position, we wrote the following,

The company announced a massive $8 billion+ acquisition of Avast shortly after we wrote about the company and this changes the nature of the investment. Under different market conditions, I would have been willing to be patient to see how the integration between the two companies might work out but this is a time for action and I would rather exit the position.

The recent purchase of Norton LifeLock’s stock came from President Ondrej Vlcek and totaled $9.99 million. Mr. Vlcek previously served as the CEO of Avast, the European cyber security software company that merged with Norton LifeLock. The company’s margins are excellent but growth is tepid, with year-over-year revenue growth hovering at 7.40%, and forward growth expected to come in at 6.17%.

Another key purchase for this week comes from ICONIQ Strategic Partners. We mentioned ICONIQ in March 2022 following their purchase of Procore Technologies (PCOR) and wrote the following,

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