Barry Diller picked up $27.6 million of Coca-Cola (KO) shares at $54.03 each around October 26th, where he is a director. This comes after buying $20 million of stock at $39.91 back in March, which worked out well.
With Coke down to $53.41 right now, today’s buyers can get in at a cheaper price than the media mogul.
Or, if the performance of Diller’s Interactive Corporation (IACI) is any guide, take his SEC filing as a contrarian signal.
Barrons: Jonathan Moreland, director of research at InsiderInsights.com, says the purchase meets his threshold for bullishness. The fact that Diller is buying now, despite having been a director since 2002, is notable.
“He nearly bottom-picked the stock in March, but the fact that he’s buying after the stock has run up significantly is a strong sign,” he says. “Undercutting that is $20 million for Diller is not the same as it would be for mere mortals. It’s not chump change, but it’s not exactly a huge sum for him.”