We present here noteworthy insider and buys and sells from Tuesday's (April 17th, 2012) over 155 separate SEC Form 4 (insider trading) filings, as part of our daily and weekly coverage of insider trades. 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 (for more info on how to interpret insider trades, please refer to the end of this article). Also, in addition, we present noteworthy institutional 13D/G 5% ownership filings.
The following are noteworthy insider trades from Tuesday:
CF Industries Holdings (CF): CF is a manufacturer of phosphate fertilizers, including urea, ammonia and urea ammonium nitrate in North America. On Tuesday, Chairman & CEO Stephen Wilson filed SEC Form 4 indicating that he exercised options and sold the resulting 50,000 shares for $9.3 million, under a 10b5-1 plan, ending with 139,886 shares after the sale (not including derivative holdings). In comparison, insiders sold a total of 0.53 million shares in the past year.
CF shares have been consolidating at their all-time highs, trading in a narrow 15% consolidation pattern, ever since the company reported its Q4 in mid-February, beating analyst revenue and earnings estimates (after taking out unusual items), as profits continued to benefit from lower natural gas prices. Its shares trade also at a very attractive discounted current 8.5 P/E on a TTM (trailing-twelve month) basis and 2.7 P/B compared to averages of 18.4 and 4.2 for its peers in the fertilizer group, while earnings are projected to fall from $22.88 in 2011 to $19.97 in 2013.
Ariad Pharmaceuticals Inc. (ARIA): ARIA is engaged in the development of drugs that treat aggressive and advanced-stage cancer by regulating cell signaling with small molecules. It is also developing small-molecule drugs that block signal transduction pathways in cells responsible for osteoporosis and immune and inflammatory diseases. On Tuesday, President Timothy Clackson filed SEC Form 4 indicating that he sold 38,711 shares for $0.58 million, pursuant to a 10b5-1 plan, and ending with 0.23 million shares after the sale. Insider selling has picked up recently at ARIA, with insiders selling with 0.13 million shares reported as sold so far in April and another 0.30 million shares reported as being sold in March, in comparison to a total of 0.49 million shares reported as being sold in the past year.
This pickup in insider selling is happening as ARIA shares consolidate near its all-time highs after a steep 100% run-up from October of last year, bolstered by recent broker upgrades based on the potential of its ponatinib treatment and other drugs in its pipeline. The company recently received negative news two weeks ago that the Oncologic Drugs Advisory Committee voted against recommending Taltorvic (ridaforolimus) for the treatment of adult and pediatric patients with metastatic soft tissue sarcoma or bone sarcoma. However, its shares have continued higher despite that as the main driver continues to be the advancement of ponatinib that the company plans for a marketing approval submission in the U.S. and Europe for Q3 of 2012.
Ultra Petroleum Corp. (UPL): UPL is an independent, exploration and production company focused on developing its long life, tight-gas sand resource play in the Green River Basin in WY. On Tuesday, Stuart Nance filed SEC Form 4 indicating the he sold 20,000 shares for $0.37 million, ending with 9,427 shares after the sale, the only insider transaction by insiders in the past year. UPL shares currently trade at a discount 15.3 forward P/E and 1.8 P/B compared to averages of 17.8 and 5.3 for its peers in the oil & gas exploration & production group.
On top of these, an additional large insider sale on Tuesday included a $1.5 million sale by Director Robert Stevens at Monsanto Co (MON), a manufacturer of corn and other crop seeds and crop protection products for growers worldwide;
Furthermore, insiders also reported noteworthy buys on Tuesday in:
- Mosaic Inc. (MOS), one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients for the global agriculture industry, in which two insiders purchased 1,100 shares for $55,259, the only insider purchase at least in the last two year; and
- Pacira Pharmaceuticals (PCRX), that develops specialty pharmaceuticals using its proprietary DepoFoam drug delivery technology for use in hospitals and ambulatory surgery centers, in which Director Gary Pace purchased 10,000 shares for $97,500, increasing his holdings to 17,692 shares.
Furthermore, major noteworthy institutional filings this week included:
- C & J Energy Services (CJES), that provides hydraulic fracturing and coiled tubing services, with a focus on complex, technically demanding well completions, to the large exploration and production companies with unconventional resource positions, in which leading private equity firm Greenwich, CT-based General Atlantic LLC filed SEC Form SC 13D/A indicating that it holds 4.2 million 8.1% of outstanding shares, an increase from the 3.4 million shares it indicated holding in an earlier SC 13D filing this month;
- NeoMedia Technologies Inc. (OTCPK:NEOM), a provider of 2D mobile barcode technology and infrastructure solutions that enable the mobile barcode ecosystem worldwide, in which Murray Capital Management filed SEC Form SC 13G indicating that it holds 70.5 million or 7.4% of outstanding shares; and
- Netsol Technologies Inc. (NTWK), a provider of enterprise software and IT services for the automobile finance and leasing, banking, healthcare, and financial services industries worldwide, in which New York-based small and midcap-focused hedge fund Newland Capital Management, with $854 million in 13-F assets, filed SEC Form SC 13G indicating that it holds 3.7 million or 5.1% of outstanding shares, an increase from the 2.4 million shares it held at the end of Q4.
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.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.
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