Shares of copper & gold mining behemoth Freeport-McMoran (FCX) have seen impressive insider buying in the last month:
3 different board members have purchased a total of more than $32 million worth of FCX stock since August 18th. All of the purchases took place below $11/share with the most recent 2.2 million shares getting snapped up at an average price of $9.70/share (as of today’s close Mr. Flores’ recent purchase is showing a ~$3.5 million profit).
The recent insider purchases come at the same time that billionaire investor Carl Icahn has taken a nearly 100,000,000 share position in FCX. The bulk of Mr. Icahn’s purchases also occurred in mid-to-late August around $10/share.
The ‘smart money’ has made it clear that they see value in FCX shares in the $10 area, and a not inconsiderable short float of 8.78% of shares outstanding (almost exactly the same size as Mr. Icahn’s long position) might begin to feel the squeeze if FCX can rise above its 50-day moving average (currently around $12) for the first time since June.