We present here four noteworthy buys and 12 noteworthy sells from Friday's SEC Form 4 (insider trading) filings, as part of our daily and weekly coverage of insider trades. These were selected by a review of over 320 separate transactions in over 185 different companies that were filed with the SEC on Friday. The filings are noteworthy based on the dollar amount sold, the number of insiders buying or selling, and based on whether the overall buying or selling represents a strong pick-up based on historical buying and selling in the stock.
Freeport McMoran Copper & Gold (FCX): Freeport McMoran is engaged in the exploration and development of copper, gold, silver and molybdenum mines in Indonesia, North and South America. On Friday, CEO Richard Adkerson (503,516 shares) and Director Bobby Lackey (15,000 shares) filed SEC Forms 4 indicating that they sold 0.52 million shares for $24.1 million, with about half of the shares sold having been acquired by the exercise of options. In comparison, Freeport McMoran insiders sold only an additional of about 60,000 shares in the past year. Freeport McMoran trades at a 8 forward P/E and 2.8 P/B compared to averages of 19.5 and 2.3 for its peers in the non-ferrous mining group, while earnings are projected to rise at a modest 6.0% annual rate from $4.89 in 2011 to $5.49 in 2013.
Delta Air Lines Inc. (DAL): Delta provides international and domestic passenger and cargo transportation in the U.S. and abroad, offering services to 357 destinations in 66 countries. On Friday, President Edward Bastian filed an SEC Form 4, indicating that he sold 50,000 shares for $0.55 million, ending with 0.57 million shares after the sale. This is on top of the sale of 96,636 shares by two insiders that we reported earlier this week, so that overall, Delta insiders have reported selling a total of 0.31 million shares in the past seven weeks. That's an acceleration in selling given that insiders sold a total of 0.62 million shares in the past year. Delta recently reported a stellar Q4, and is up 15% since the Q4 report and almost 35% YTD, amid what is turning out to be a great year so far for airline stocks. Even after the recent huge surge, Delta still trades at a modest 4 forward P/E and 7.5 P/B compared to the averages of 8.2 and 1.5 for its (large-cap) peers in the airline group.
Akamai Technologies Inc. (AKAM): Akamai is a global provider of services that help enterprises and e-businesses improve the delivery of their content and applications over the Internet. On Friday, CEO Paul Sagan filed an SEC Form 4 indicating that he exercised options and sold the resulting 21,250 shares for $0.74 million, pursuant to a 10b5-1 plan, ending with 0.21 million shares in direct and 0.20 million shares in indirect holdings after the sale. In comparison, Akamai insiders sold only an additional about 40,000 shares in the past year. Akamai just last week released a surprisingly strong Q4, with earnings (45c v/s 40c) and revenue ($324 million v/s $311 million) trouncing estimates. The stock received positive reviews and was upgraded by several brokers, and is up about 12% in the last two trading days. Even with the surge, the stock trades at a reasonable 20-21 forward P/E and 3.2 P/B compared to averages of 27.2 and 3.3 for its peers in the internet services group.
UnitedHealth Group Inc. (UNH): UnitedHealth is a diversified health and well-being company, serving more than 70 million Americans. On Friday, three insiders filed SEC Forms 4 indicating that they exercised options and sold the resulting total of 0.51 million shares for $27.1 million. The majority of the shares were sold by EVP Reed Tuckson (290,000 shares) and EVP David Wichmann (200,000 shares), with the remaining 20,000 shares sold by Director William Ballard. In comparison, UnitedHealth insiders sold a total of 2.7 million shares in the past year. UnitedHealth stock currently trades at a 10 forward P/E and 2.0 P/B compared to averages of 10.5 and 2.0 for its peers in the HMO group. The company is an outperformer in the group, posting a good Q4 last month, handily beating earnings ($1.17 v/s $1.04) and reaffirming forward guidance, and trading near its highs. Meanwhile, the rest of the group is in turmoil over uncertainty in healthcare legislation going forward.
Alkermes Plc (ALKS): Alkermes, an integrated biotech company, develops injectable and oral products for the treatment of central nervous system disorders, addiction, diabetes and autoimmune disorders. On Friday, COO Gordon Pugh filed an SEC Form 4 indicating that he exercised options and sold the resulting 11,550 shares for $0.21 million, pursuant to a 10b5-1 plan, ending with 26,002 shares after the sale (not including derivative securities). This is on top of the 87,500 shares that we reported insiders filed SEC Forms 4 for just at the end of the prior week. In comparison, insiders sold a total of 0.32 million shares in the past year. Alkermes reported its Q4 just over a week ago, beating revenues and earnings estimates, with revenues continuing to be on a strong growth trajectory, up 74% quarter-over-quarter, and up 185% year-over-year, while also continuing to post losses. Analysts continue to project strong revenue growth going forward, with another 33% growth from FY ending March 2012 to FY 2013. The stock trades at 5.6 times annual revenue on a TTM basis, compared to the average of 235.7 for the biotech group.
CA Inc. (CA): CA is a premier international developer of information technology management software products that operate on a range of hardware platforms and operating systems. On Friday, EVP George Fischer filed an SEC Form 4 indicating that he sold 17,390 shares for $0.46 million, pursuant to a 10b5-1 plan, ending with about 139,000 shares in direct and indirect holdings after the sale. In comparison, CA insiders sold a total of 0.12 million shares in the past year.
On top of these, some additional large insider sales on Thursday included a $7.3 million sale by two insiders at fast-food restaurant chain operator Yum Brands (YUM), with a large majority of the sales (99,110 shares out of 111,182 shares) by CFO Richard Carucci; a $1.2 million sale by EVP Alan Kaye at toy-maker Mattel Inc. (MAT); a $1.7 million sale, pursuant to a 10b5-1 plan, by Chairman & CEO Michael Gregoire at talent management software provider Taleo Corp. (TLEO); a $2.3 million sale by two insiders, CFO Judy Bruner and CEO Sanjay Mehrotra, both pursuant to 10b5-1 plans, at Sandisk Corp. (SNDK), a manufacturer of non-volatile removable memory cards used in various computing and electronic devices; a $3.5 million sale by Director Nicholas Moore at leading biotech company Gilead Science Inc. (GILD); and a $2.2 million sale by President Kurt DelBene at Microsoft Corp. (MSFT).
Insiders bought on Friday in Meru Networks Inc. (MERU), a providers of a virtualized wireless LAN solution, with three insiders filing SEC Forms 4 indicating that they purchased a total of 69,000 shares for $0.25 million; EVP Scott Jamison filing an SEC Form 4 indicating that he purchased 800 shares for $72,210 at Perrigo Co. (PRGO), a developer of OTC and generic pharmaceuticals, diagnostic and nutritional products and active pharmaceuticals; Director John Cahill at bank holding company Hudson Valley Holding Corp. (HVB), filing an SEC Form 4 indicating that he purchased 4,400 shares for $75,196; and Director Brian Lebon at Louisiana Bancorp Inc. (LABC) filing an SEC Form 4 indicating that he purchased 5,000 shares for $78,500.
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.