Piper Jaffray Reports On Heavy Insider Buying At LEAP

Piper Jaffray maintains its Underweight rating and its $7 price target on Leap Wireless International LEAP in light of insider buying at the company. Says Piper Jaffray, in the report, “We think the significant insider buying at Leap may not be as positive a signal for the stock as is typically the case. Chairman Rachesky/MHR has purchased approximately 8M shares or 10% of the shares outstanding in recent trading; we believe this signals the company is not in discussions to sell itself. The insider purchases have also been a material portion of the volume, that if gone may leave the stock weaker. Operationally, we think the prepaid wireless business is under duress and yielding limited returns.” LEAP closed yesterday at $8.87.