Insiders reported on Thursday that they bought and sold stock in over 350 separate transactions in over 170 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime this week. We culled through these 350 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 Thursday (ex-healthcare and technology sectors that are discussed separately in another article that can be accessed from our author page); notable 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:
BB&T Corp. (BBT): BBT operates as a financial holding company for Branch Banking and Trust Company, which provides banking and trust services to individuals and businesses via over 1,700 offices in 12 states and Washington, D.C. On Thursday, Sr. EVP Charles Wilson filed SEC Form 4 indicating that he sold 29,349 shares for $0.87 million, ending with over 66,000 shares in direct and over 59,000 shares in indirect holdings after the sale (not including derivative securities). In comparison, BBT insiders sold only an additional 962 shares in the past year. BBT shares are up over 15% YTD, and they trade at 9-10 forward P/E and 1.2 P/B compared to averages of 8.9 and 0.9 for its peers in the major regional banking group.
Cummins Inc. (CMI): CMI manufactures diesel and natural gas engines, electric power generation systems and engine-related component products for OEMs worldwide. On Thursday, five insiders filed SEC Forms 4 indicating that they sold a total of 25,706 shares for $3.1 million, with a minor portion of those shares sold coming from the exercise of options. Of these sales, the majority were by VP Marya Rose (10,030 shares) and VP John Wall (7,500 shares). In comparison, CMI insiders sold 0.14 million shares in the past year. CMI just last week reported a strong Q4, handily beating analyst revenue and earnings estimates; the stock currently trades at a forward 10-11 P/E and 4.2 P/B compared to averages of 10.5 and 4.1 for its peers in the internal-combustion engines group.
Caesars Entertainment (CZR): CZR is the world's largest casino entertainment company, operating 52 casinos in twelve states and seven countries, primarily under the Harrah's, Caesars and Horseshoe brand names. On Thursday, five insiders filed SEC Forms 4 indicating that they purchased a total of 20,827 shares for $0.19 million. CZR just went public this week, on Wednesday, priced at $9; the shares are up about 70% from the IPO price after almost doubling on the day of the IPO.
Matador Resources Co. (MTDR): MTDR is an independent energy company, engaged in the acquisition, exploration, development and production of oil and natural gas resources, with a primary focus on oil and natural gas shale plays and other unconventional resources in the United States, primarily in LA and TX. On Thursday, seven insiders filed SEC Forms 4 indicating that they purchased a total of 0.22 million shares for $2.7 million. The majority of the shares were purchased by Chairman and CEO Joseph Foran that bought 143,400 shares. MTDR just went public last Thursday, priced at $12; its shares are currently slightly under-water, trading about $0.25 below the IPO price.
On top of these, some additional large insider sales on Thursday included a $4.5 million sale by Founder and Director John Hendricks, pursuant to a 10b5-1 plan, at Discovery Communications (DISCA); a $2.3 million sale by EVP Frederick Tuomi at REIT Equity Residential (EQR); a $11.4 million sale by two insiders at trucking company JB Hunt Transportation Services (JBHT); a $1.1 million sale by Executive Chairman of the Board Robert Moran, pursuant to a 10b5-1 plan, at Petsmart Inc. (PETM), an operator of a retail chain of stores selling products, services and solutions for pets; a $3.0 million sale by SVP Louis Stellato at paint and coating store chain operator Sherwin-Williams Co. (SHW); and a $2.8 million sale by two insiders, pursuant to 10b5-1 plans, at utility company Wisconsin Energy Corp. (WEC). Other notable sales on Thursday included a 5,900 share sale for $53,395 at coal exploration and production company Patriot Coal Corp. (PCX) by VP Christopher Knibb; in comparison, insiders sold only an additional 44,467 shares in the past two years.
Insiders bought on Thursday in Fuel Systems Solutions Inc. (FSYS), a manufacturer of alternative fuel components used in engines for industrial, transportation and power generation industries, with a $8.9 million purchase by private investor and 10% owner Kevin Douglas, perhaps better known for his 10% ownership stakes in wind and power grid products and services provider American Superconductor (AMSC) and high-performance, low-emission engines and fuel injection systems manufacturer Westport Innovations Inc. (WPRT).
Credit: Fundamental data in this article were based on SEC filings, Zacks Investment Research, Thomson Reuters and Briefing.com. The information and data is believed to be accurate, but no guarantees or representations are made.
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.