Insider Weekends: Largest Insider Purchase At CME Group In Over Ten Years

A signal from insider transactions we pay special attention to is opportunistic purchases by long-serving Directors. These signals don’t show up often but when they do, we have seen impressive subsequent performance. Sometimes it takes several weeks or months for this performance to materialize as insiders often tend to be early with their purchases. We saw this with Jay Hoag’s purchases of Netflix (NFLX), Germán Larrea Mota-Velasco’s purchases of Southern Copper (SCCO), Harold Hamm’s purchases of Continental Resources (CLR) and Bruce Sachs’ purchases of Vertex Pharmaceuticals (VRTX), which we discussed in our December 2020 Special Situations Newsletter. We saw this pattern once again last week when William R. Shepard, an independent Director of the derivatives exchange CME Group (CME) purchased $8.27 million worth of stock at an average price of $170 per share. This was the largest insider purchase at the CME Group in over ten years and Mr. Shepard’s largest purchase since his August 2010 $1.22 million purchase at a split-adjusted price of $49 per share. Mr. Shepard has served on The CME Group’s Board of Directors since 1997 and has been a CME Group member for 45 years. The CME Group is the world’s largest derivatives marketplace that facilitates the...

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