Seeking Alpha
Long/short equity, research analyst, insider ownership, behavioral finance
Profile| Send Message|
( followers)  

Summary

  • Tables of the top insider purchases and sales filed with the SEC on Monday, July 7, 2014, based on dollar value.
  • Dollar values often do not equate with significance when it comes to insider trades.
  • Proprietary Insider Company Ratings are further given for selected companies.

I cannot repeat enough that dollar value is only one metric to assess the significance of an insider transaction. InsiderInsights calculates Insider Filer Statistics in real time, and formulates Insider Company Ratings based on numerous behavioral factors, so our clients can separate real investment intelligence from time-wasting noise.

On Today's Tables:

A Form 4 representing over $1 billion was filed by Forest Labs relating to its purchase of shares of Furiex Pharmaceuticals (NASDAQ:FURX). As enormous a dollar value as it represents, that insider transaction doesn't actually supply actionable investment intelligence. It is merely the execution of the complete buyout of Furiex by Forest Labs--or, rather, its parent, Actavis plc (NYSE:ACT)--which was announced over two months ago.

The important and profitable insider activity to follow at Furiex occurred between May 2011 and June 2012, when insiders generated four Significantly Bullish Insider Company Ratings. Check out the snapshot of our Premium Insider History of FURX to see those past signals, which gave investors following insider data plenty of time--and reason--to get into this stock.

Also note on this image that we rated the insider selling at FURX in 2013 and earlier in 2014 as Insignificantly Bearish. That was also an easy call for our automated expert system to score, since insiders selling into strength is the most common insider activity we see on a daily basis. That most of the insiders selling FURX in the past year also had non-predictive insider filing statistics made the insignificant rating obvious to our system, and kept our clients form exiting this winning position too soon.

This billion dollar transaction at FURX is further instructive to anyone following the too simplistic ratios of insider activity built on dollar values to relay market and/or sector sentiment. If the services building insider ratios from dollar values don't have special transaction types or ratings to weed out the large dollar values of pure noise that the raw insider data feed generates, their ratios will be skewed likewise--and arguably not useful to follow.

Looking at the rest of today's tables:

Insider trades were rated Significant at:

  • Mercer International (NASDAQ:MERC);
  • Magnum Hunter Resources (NYSE:MHR);
  • Opko Health (NYSE:OPK), and;
  • Ladenburg Thalmann Financial (NYSEMKT:LTS).

Insider trades were rated Nearly Significant at:

Insider trades were considered Insignificant at:

  • Western Gas Equity LP (NYSE:WGP);
  • CACI International (NYSE:CACI);
  • Blue Capital Reinsurance (NYSE:BCRH);
  • LinkedIn Corporation (NYSE:LNKD), and;
  • Stryker Corporation (NYSE:SYK).

There is a Conflicted Insider Signal at:

  • Life Time Fitness (NYSE:LTM).

The Insider Purchases at The Michaels Companies (NASDAQ:MIK) were associated with its recent IPO. This was nice to see, but it's difficult to argue significance for transactions by insiders without track records of unseasoned shares.

For more on how to profit from our Daily Round Up tables and analyze insider data, see references below.

Insider Purchases
#:Filer NameInsider TitlesCompany NameTickerTrans
Type
Dollar Value
1Forest LaboratoriesBOFuriex PharmFURXJB*$1,061,061,248
2Rooney Patrick GCEO,DIR,BOPositronPOSCJB*$1,000,000
3Montpelier ReBOBlue Capital ReBCRHB$652,629
4Frost Phillip MdCEO,CB,BOOpko HealthOPKJB*,B$407,774
5Kellogg Peter RBOMercer IntlMERCB$344,725
6Gilinski SaulDIRLadenburg ThalmannLTSB$274,626
7Conn Corey NCFO,DIRPositronPOSCJB*$250,000
8Sonsteby Charles MOMichaels CompaniesMIKJB*$170,000
9Rubin CarlCEO,DIRMichaels CompaniesMIKJB*$170,000
10McClaugherty Joe LDIRMagnum HunterMHRB$39,535

Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes:
B=Open-market Buy; AB=10b5-1 (automatic) Buy; JB*=Buy indicated as being open-market, but not confirmed by trading price range and volume for the session.

Insider Sales
#:Filer NameInsider TitlesCompany NameTickerTrans
Type
Dollar Value
1Anadarko PetroleumBOWestern GasWGPJS*$335,282,496
2Blue HarbourBOCaci IntlCACIS$8,583,470
3Weiner JeffCEO,DIRLinkedinLNKDAS$6,511,608
4Akradi BahramCB,CEO,DIRLife Time FitnessLTMAS$672,230
5Kristin MajaBOVeeva SystemsVEEVS$638,390
6Stryker Ronda EDIRStrykerSYKAS$596,297
7Clements Robert MCB,CEOEverbank FinancialEVERAS$501,115
8Troia ChristopherVP,IOBarnes & NobleBKSS$470,885
9Squiller DanielCOOGt Adv TechGTATAS$300,737
10Evanisko Michael JDIRQuintiles TransQAS$270,000

Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes:

S=Open-market Sale; AS=10b5-1 (automatic) Sale; JS*=Sale indicated as being open-market, but not confirmed by trading price range and volume for the session.

Did you miss our Previous Daily Round Up?

An important note from Jonathan Moreland, founder of InsiderInsights.com:

In a victory for common sense, it's been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders".

Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations.

At InsiderInsights.com, our clients find new investment ideas every day using more intricate insider screens to determine where they should focus their subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be profitable indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.

So use these daily articles as the initial research tools they are meant to be, and click the links in the tables to analyze a company's or insider's full insider history. Also feel free to email us with any questions on our proprietary insider data, filer statistics, and company ratings.

I should also relay that you could have seen the trades on today's Daily Round Up tables within hours of being filed, by signing up for our Free Intra-Day Top Trades Alerts.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Source: InsiderInsights.com Daily Round Up: 7/7/14