Insider Transactions on 2/17/2017
By Frederic Marsanne
Published on February 18, 2017
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(Cambridge, MA) — You may recall that an officer, director or owner of 10% or more of a class of a company’s securities must report any trade to the Securities and Exchange Commission within two business days. Large equity purchases (resp. sales) by several insiders are considered bullish (resp., bearish). While a secondary indicator (earnings, earnings, where are you?), insider transactions signal that insiders at public companies (well, some of them anyway) believe now is not a bad time to accumulate or liquidate shares. Maybe they see something coming…
Last Friday (2/17/2017) large insider purchases (i.e., around or above $500k) picked up a bit to include:
- Arconic Inc., formerly Alcoa Inc. (ARNC) ($11.9m, on top of tens of millions of dollars invested over the past few weeks, 1 insider = Elliott Associates, L.p.)
- BioTime, Inc. (BTX) ($3m, 1 insider and director, Neal Bradsher, President of Broadwood Capital, Inc., a private investment firm. Mr. Bradsher was a director of Questcor Pharmaceuticals, Inc., from March 2004 until August 2014, when Questcor was acquired by Mallinckrodt plc. Questcor was a biopharmaceutical company focused on the treatment of patients with serious, difficult-to-treat autoimmune and inflammatory disorders. Mr. Bradsher holds a B.A. degree in economics from Yale College and is a Chartered Financial Analyst)
- Foundation Building Materials, Inc. (FBM), a specialty distributor of wallboard and suspended ceiling systems ($1.65m, 7 insiders including the COO, the CFO and Ruben Mendoza, President and CEO. Prior to founding the firm in 2011, Mr. Mendoza served as the Chief Executive Officer of AMS, a leading distributor of wallboard, acoustical suspended ceiling systems, lath and plaster products, doors and other building products. Mr. Mendoza originally joined AMS in 1991 and assumed the Chief Executive Officer role in 2003 after several years as AMS’ Vice President and Sales Manager. AMS grew significantly under his leadership, particularly across the West Coast and Northern Mexico through greenfields and strategic acquisitions. Mr. Mendoza attended California State University and has completed executive education at Harvard Business School (Strategy), Wharton School of Business (Management) and Northwestern (Marketing).
- Coty Inc (COTY) ($1.4m, 1 insider = the CEO)
- Seacoast Banking Corporation of Florida (SBCF) ($970k, 7 directors)
- Vermillion, Inc. (VRML) ($865k, 1 insider = Oracle Investment Management, on top of several other insider buys over the past month)
- Rent-A-Center Inc (RCII) ($845k, 1 insider = the interim CEO; does the stock’s recent meltdown constitute a unique purchase opportunity?)
Insider sales (greater than $5 million) on 2/17/17 were consequential and originated from a wide range of industries, tech surely being one of them. Financials also continue to see some selling after the recent sector climb. Insider distribution occurred at:
- Facebook Inc. (FB) ($43.6m, COO Sheryl Sandberg)
- Lear Corporation (LEA) (>$30m, 9 insiders incl. the P/CEO, the CFO and several line-of-business executives)
- Masimo Corporation (MASI) ($26.3m, 2 insiders incl. the COB/CEO and the CFO)
- Citigroup Inc. ($23.2m, 6 insiders incl. the CEO, the President and several line-of-business executives)
- Amazon.com, Inc. (AMZN) ($12.65m, 6 insiders incl. the CFO and several line-of-business executives)
- Apple Inc. ($9.5m, 1 insider)
- Tableau Software Inc (DATA) ($8.7m, 5 insiders incl. the co-Founder and COB)
- Automatic Data Processing (ADP) ($7.9m, 1 insider = P/CEO)
- Carnival Corp (CCL) ($7.25m, 5 insiders incl. the P/CEO)
- Carnival plc (ADR) (CUK) ($6.8m, 7 insiders incl. the P/CEO)
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Check out the following two videos; they capture some of the spirit…
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