Insiders reported on Monday that they bought and sold stock in over 400 separate transactions in over 210 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime after mid-week last week. We culled through these 400 or so insider buys and sells (based on SEC Forms 3, 4, and 5 filings), as part of our daily and weekly coverage of insider trades, and present here the most notable trades reported on Monday in the healthcare, energy, and services sectors. Notable is based on the dollar amount sold, the number of insiders selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock (for more info on how to interpret insider trades, please refer to the end of this article):
Halliburton Company (NYSE:HAL): HAL provides a variety of equipment, and maintenance, engineering and construction services to the oil and gas exploration and production (E&P) industry, including reservoir completion and drilling services. On Monday, Director Murry Gerber filed SEC Form 4 indicating that he bought 30,000 shares for $1.1 million, ending with 32,000 shares after the purchase. Insider buying is rare at HAL, and in fact, insiders have bought only an additional 2,000 shares in the past two years, also by Mr. Murray. HAL is undervalued, trading at 8 forward P/E and 2.6 P/B compared to averages of 14.2 and 3.3 for its peers in the oil field services group, while earnings are projected to increase at a compound 17.1% annualized rate from $3.35 in 2011 to $4.59 in 2013.
Cytori Therapeutics Inc. (NASDAQ:CYTX): CYTX develops stem and regenerative cell therapies for reconstructive surgery and treatment of heart disease and other conditions, utilizing adult stem and regenerative cells derived from adipose tissue or fat. On Monday, CEO Christopher Calhoun filed SEC Form 4 indicating that he exercised options and sold the resulting 205,000 shares for $0.83 million, pursuant to a 10b5-1 plan, ending with 168,375 shares in direct and 36,850 shares in indirect holdings after the sale. This is in addition to the 152,425 shares that insiders reported selling just in the past one week. In comparison, sold a total of 0.42 million shares in the past year.
Travelers Companies Inc. (NYSE:TRV): TRV provides commercial and personal property and casualty insurance products and services to businesses, government units, associations and individuals primarily in the U.S. On Monday, three insiders filed SEC Forms 4 indicating that they exercised options and sold a total of 101,065 shares for $6.0 million. The selling insiders included EVP John Clifford (23,597 shares), Vice Chairman William Heyman (30,000 shares) and EVP William Cunningham (47,468 shares). In comparison, insiders sold only a total of 0.8 million shares in the past year (in direct holdings). TRV trades at a discount 9-10 forward P/E and 1.0 P/B compared to averages of 13.5 and 1.8 for its peers in the property and casualty insurance group.
Paychex Inc. (NASDAQ:PAYX): PAYX provides payroll, human resource and employee benefits outsourcing services via more than 100 offices in the U.S. On Monday, SVP Michael Gioja filed SEC Form 4 indicating that he exercised options and sold the resulting 7,840 shares for $0.25 million, ending with 13,979 shares after the sale. PAYX trades at a current 21.3 P/E on a TTM basis, and at 7.4 P/B, compared to averages of 16.7 and 2.2 for its peers in the outsourcing group.
On top of these, some additional large insider trades on Monday included a $5.2 million sale by EVP Roger Perlmutter at biotech company Amgen Inc. (NASDAQ:AMGN); a $3.9 million sale by two insiders, the majority of $3.6 million by EVP Paul Mahon, at biotech company United Therapeutics Corp. (NASDAQ:UTHR), that is focused on developing therapies to treat cardiovascular, inflammatory and infectious diseases; a $2.1 million sale by two insiders, the majority of $1.5 million by CEO John Roberts, at full truckload containerizable freight services provider JB Hunt Transport Services Inc. (NASDAQ:JBHT); a $1.9 million sale by two insiders, CVP John Kehl and CVP Huimin Wang, pursuant to 10b5-1 plans, at cardiovascular medical products company Edwards Lifesciences Corp. (NYSE:EW); and a $7.9 million sale by two insiders, SVP Robert Weber and SVP Rodney Adkins, at International Business Machines Corp. (NYSE:IBM).
Disclaimer: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our 'opinions' and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your individual investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.