Three Companies Registering Heavy Insider Buying Activity

Moving on to the low-priced stock, Cliffs Natural Resources Inc. (NYSE:CLF) saw one of its Directors make a significant purchase of shares last week. James S. Sawyer acquired a 25,000-share block last Wednesday for $3.07 each and enlarged his holdings to 34,682 shares. The challenging environment in the iron ore market has put significant pressure on Cliffs Natural Resources’ activities and its stock performance in particular. The mining and natural resources company has seen its shares decline 56% year-to-date. However, Cliffs Natural Resources Inc. (NYSE:CLF)’s management has been undertaking serious cost-cutting efforts lately, in an attempt to combat the tough environment caused by low iron-ore prices. At the same time, the company’s officials asserted their belief that the U.S. steel market will strengthen in 2016 and its cost position will enable the company to deliver strong financial performance next year. The number of hedge funds within our database invested in the company at the end of the June quarter stood at 19, while their stakes accounted for 15.40% of the company’s outstanding common stock. Jim Simons’ Renaissance Technologies had a 3.85 million-share position in Cliffs Natural Resources Inc. (NYSE:CLF) at the end of the second quarter.

Last but not least, we will examine the heavy insider buying activity at Olin Corporation (NYSE:OLN), which has seen nine different insiders purchase stock last week. So let’s lay out the most noteworthy insider buys starting with Director Richard M. Rompala, who acquired 50,000 shares on Wednesday at a weighted average price of $19.51 and enlarged his stake to 50,500 shares. Director Randall W. Larrimore reported the acquisition of 37,500 shares at a price of $19.91 per share, all of which are held by a family trust fund. After the recent purchase, this trust fund owns 46,905 shares of Olin. Furthermore, George H. Pain, Senior Vice President, General Counsel and Secretary, bought 25,000 shares last week at prices between $19.96 and $20.00 per share, and currently holds a direct ownership stake of 117,866 shares. Lastly, James A. Varilek, Executive Vice President, and President of Chlor Alkali Vinyls and Services of Olin Corporation (NYSE:OLN), acquired a 15,000-share block at $19.27 apiece, which is held by a family trust fund that now owns 22,004 shares. The shares of the manufacturer of chlor alkali products are 10% in the red year-to-date, but they have been on an uptrend since the end of September. Just recently, RBC Capital Markets upgraded the stock to ‘Outperform’ from ‘Sector Perform’ and raised its price target to $24 from $21, citing attractive risk-reward for the stock as a result of “several positive factors”. 24 hedge funds tracked by Insider Monkey owned the stock at the end of the June quarter, all of which accumulated 13.00% of the company’s shares. Phill Gross and Robert Atchinson’s Adage Capital Management was among the largest shareholders of Olin Corporation (NYSE:OLN), holding a stake of 2.36 million shares as of June 30.

Disclosure: None