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Michael Michaud is the founder of Invest2Success.com (http://www.invest2success.com/) and the Invest2Success Blog (http://invest2success.blogspot.com/). He has been investing and trading in the financial markets since 1989. He founded Invest2Success.com to empower individual institutional... More
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  • Weekly Top Insider Stock Buys And Sells 0 comments
    Oct 8, 2012 6:53 PM

    October 08, 2012 - Weekly Top Insider Stock Buys and Sells by GuruFocus

    CVS Caremark Corporation (NYSE:CVS): Executive Vice President and General Counsel Thomas M. Moriarty Bought 6,164 Shares

    Executive Vice President and General Counsel of CVS Caremark Corporation Thomas M. Moriarty bought 6,164 shares on 10/01/2012 at an average price of $48.86. CVS/Caremark is the nation's premier integrated pharmacy services provider, combining one of the nation's pharmaceutical services companies with the country's largest pharmacy chain. CVS Caremark Corporation has a market cap of $62.16 billion; its shares were traded at around $48.86 with a P/E ratio of 16.02 and P/S ratio of 0.58. The dividend yield of CVS Caremark Corporation stocks is 1.33%. CVS Caremark Corporation had an annual average earnings growth of 15.7% over the past 10 years. GuruFocus rated CVS Caremark Corporation the business predictability rank of 4-star.

    On Aug. 7, CVS Caremark Corporation announced revenues, operating profit and net income for the three months ended June 30, 2012. Net revenues increased 16.3% to a record $30.7 billion, with Pharmacy Services up 28.2% and Retail Pharmacy up 6.9%. Retail Pharmacy same stores sales increased 5.6%. Income from continuing operations increased 18.9%. Adjusted EPS of $0.81, up 25.2%; GAAP diluted EPS from continuing operations of $0.75

    This month, Executive Vice President and General Counsel Thomas M. Moriarty and Senior Vice President and CIO Stephen J. Gold bought shares of CVS stock. Senior Vice President and President, MinuteClinic Andrew Sussman and Senior Vice President and Chief HR Officer Lisa Bisaccia sold shares this month. Executive Vice President Sales & Account Services J. David Joyner and Executive Vice President and CFO David M. Denton sold shares in September. President and CEO Larry J. Merlo sold 161,359 shares in July.

    Limited Brands Inc. (LTD): Director Michael G. Morris Bought 10,110 Shares

    Director of Limited Brands Inc. Michael G. Morris bought 10,110 shares on 10/02/2012 at an average price of $50.56. Limited Brands, Inc. is an international company that sells its products through Victoria's Secret, Pink, Bath & Body Works, La Senza, C. Limited Brands Inc. has a market cap of $14.53 billion; its shares were traded at around $50.56 with a P/E ratio of 19.01 and P/S ratio of 1.4. The dividend yield of Limited Brands, Inc. stocks is 1.98%. Limited Brands Inc. had an annual average earnings growth of 5.5% over the past 10 years. GuruFocus rated Limited Brands Inc. the business predictability rank of 3-star.

    On Aug. 15, Limited Brands Inc. reported 2012 second quarter results. Adjusted earnings per share for the second quarter ended July 28, 2012, were $0.50 compared to adjusted earnings per share of $0.48 for the quarter ended July 30, 2011. Second quarter adjusted operating income was $308.9 million compared to $307.0 million last year, and adjusted net income was $147.2 million compared to $150.7 million last year.

    Last week, Director Michael G Morris bought 10,110 shares of LTD stock. Pres Global Sourcing&Logistics Charles Mcguigan sold shares in September, EVP of HR Jane L Ramsey sold shares in August, and Director Allan R Tessler sold shares in July.

    Best Buy Co. Inc. (NYSE:BBY): Director Matthew H. Paull Bought 6,500 Shares

    Director of Best Buy Co. Inc. Matthew H. Paull bought 6,500 shares on 10/02/2012 at an average price of $18.02. Best Buy operates in a single business segment, selling personal computers and other home office products, consumer electronics, entertainment software, major appliances and related accessories principally through its retail stores. Best Buy Co. Inc. has a market cap of $6.07 billion; its shares were traded at around $18.02 with a P/E ratio of 4.33 and P/S ratio of 0.12. The dividend yield of Best Buy Co. Inc. stocks is 3.77%. Best Buy Co. Inc. had an annual average earnings growth of 13.9% over the past 10 years. GuruFocus rated Best Buy Co. Inc. the business predictability rank of 5-star.

    On Aug. 21, Best Buy Co. Inc. announced GAAP net earnings from continuing operations were $12 million, or $0.04 per diluted share, for the three months ended Aug. 4, 2012, compared to net earnings from continuing operations of $150 million, or $0.39 per diluted share for the prior-year period. Excluding previously announced restructuring charges, adjusted (non-GAAP) net earnings from continuing operations for the second quarter of fiscal 2013 were $68 million, or $0.20 per diluted share.

    Last week, Director Matthew H. Paull bought 6,500 shares of BBY stock. CEO Interim George Lawrence Mikan III bought 100,000 shares in May. In July, 10% Owner Richard M. Schulze sold 2,090,909 shares.

    Smithfield Foods Inc. (NYSE:SFD): Director David C. Nelson Bought 5,000 Shares

    Director of Smithfield Foods Inc. David C. Nelson bought 5,000 shares on 9/28/2012 at an average price of $20.61. Smithfield Foods Inc. is one of the world's largest pork processors and hog producer. Smithfield Foods Inc. has a market cap of $3.08 billion; its shares were traded at around $20.61 with a P/E ratio of 9.04 and P/S ratio of 0.24. Smithfield Foods Inc. had an annual average earnings growth of 8.5% over the past 5 years.

    On September 4, Smithfield Foods Inc. reported fiscal 2013 first quarter results. All comparisons are to the first quarter of fiscal 2012. Sales for the first quarter of fiscal 2013 were $3.1 billion, steady with the prior year. Net income was $61.7 million ($0.40 per diluted share) in the first quarter, compared to net income of $82.1 million ($0.49 per diluted share) last year.

    Last week, Director David C. Nelson bought 5,000 shares of SFD stock. Director Richard T. Crowder bought 2,000 shares last month. Executive Vice President Dhamu R. Thamodaran, President and CEO C. Larry Pope and Executive Vice President Dhamu R. Thamodaran bought shares in July.

    First Niagara Financial Group Inc. (NASDAQ:FNFG): Director Thomas E. Baker Bought 2,597 Shares

    Director of First Niagara Financial Group Inc. Thomas E. Baker bought 2,597 shares on 09/28/2012 at an average price of $8.41. First Niagara Financial Group Inc. is a multi-bank holding company and is the parent of First Niagara Bank, Cortland Savings Bank and Cayuga Bank. First Niagara Financial Group Inc. has a market cap of $2.97 billion; its shares were traded at around $8.41 with a P/E ratio of 9.89 and P/S ratio of 2.26. The dividend yield of First Niagara Financial Group Inc. stocks is 3.8%. First Niagara Financial Group Inc. had an annual average earnings growth of 3.5% over the past 10 years.

    On July 27, First Niagara Financial Group Inc. reported results for the 2012 quarter. In the second quarter of 2012, First Niagara posted non-GAAP operating net income available to common shareholders of $59.1 million, or $0.17 per diluted share, compared to $0.19 per share in the first quarter of 2012.

    Total operating revenues of $338.7 million, which do not include the previously announced $15.9 million gain recorded on the sale of mortgage-backed securities, increased $26.4 million, or 8% over the first quarter of 2012. Net interest income was up $16.6 million, or 7%, from the prior quarter.

    Last week, Director Barabara S. Jeremiah, Director Thomas E. Baker and Director George M. Philip bought shares of FNFG stock. Executive Vice President Retail Banking Mark R. Rendulic, Chief Credit Officer Richard M. Barry, President and CEO John R. Koelmel and CFO Gregory W. Norwood sold shares in August.

    Dollar General Corp. (NYSE:DG): Director Adrian M. Jones sold 7,712,606 Shares Director of Dollar General Corp. (DG) Adrian M. Jones sold 7,712,606 shares on 10/03/2012 at an average price of $51.69.

    Dollar General Corporation is a discount retailer in the U.S. Dollar General Corp. has a market cap of $17.22 billion; its shares were traded at around $51.69 with a P/E ratio of 19.36 and P/S ratio of 1.16.

    On Sept. 5, Dollar General Corporation reported strong sales, operating profit and net income for its fiscal 2012 second quarter (13 weeks) ended Aug. 3, 2012. The company's net income increased by 47 percent to $214 million in the 2012 second quarter, compared to net income of $146 million in the 2011 second quarter.

    10% Owner KKR Fund Holdings LP sold 18,535,964 shares of DG stock on 10/03/2012 at the average price of $50.72. KKR Fund Holdings LP owns at least 39,922,048 shares after this. The price of the stock has increased by 1.91% since.

    Qualcomm Inc. (NASDAQ:QCOM): Executive Vice President and CFO William E. Keitel sold 186,206 Shares

    Executive Vice President and CFO of Qualcomm Inc. (QCOM) William E. Keitel sold 186,206 shares on 10/01/2012 at an average price of $62.65.

    Qualcomm Inc. develops and delivers innovative digital wireless communications products and services based on the company's CDMA digital technology. Qualcomm Inc. has a market cap of $106.7 billion; its shares were traded at around $62.65 with a P/E ratio of 19.82 and P/S ratio of 7.13. The dividend yield of Qualcomm Inc. stocks is 1.6%. Qualcomm Inc. had an annual average earnings growth of 18.2% over the past 10 years. GuruFocus rated Qualcomm Inc. the business predictability rank of 3.5-star.

    On July 18, 2012 Qualcomm Incorporated announced results for the third quarter of fiscal 2012 ended June 24, 2012. Revenues: $4.63 billion, up 28 percent year over year and down 6 percent sequentially. Operating income: $1.72 billion, up 23 percent year over year and down 10 percent sequentially. Net income: $1.49 billion, up 20 percent year over year and down 16 percent sequentially. Diluted earnings per share: $0.85, up 16 percent year over year and down 16 percent sequentially.

    Executive Vice President Group President Derek K. Aberle sold 4,000 shares of QCOM stock on 09/14/2012 at the average price of $64.5. Derek K. Aberle owns at least 2,054 shares after this. The price of the stock has decreased by 2.87% since.

    LinkedIn Corporation (NYSE:LNKD): Senior Vice President, Products, User Experience Dipchand Nishar sold 70,875 Shares

    Senior Vice President, Products, User Experience of LinkedIn Corporation (LNKD) Dipchand Nishar sold 70,875 shares on 10/01/2012 at an average price of $118.83.

    LinkedIn Corporation is an online professional network which allows members to create, manage, and share their professional identity online, build and engage with their professional network, access shared knowledge and insights, and find business opportunities. LinkedIn Corporation has a market cap of $12.56 billion; its shares were traded at around $118.83 with a P/E ratio of 848.79 and P/S ratio of 24.05.

    On Aug. 2, 2012, LinkedIn Corporation reported its financial results for the second quarter ended June 30, 2012: Revenue for the second quarter was $228.2 million, an increase of 89% compared to $121.0 million in the second quarter of 2011.Net income for the second quarter was $2.8 million, compared to net income of $4.5 million for the second quarter of 2011. GAAP EPS for the second quarter was $0.03; Non-GAAP EPS for the second quarter was $0.16.

    Senior Vice President, Products, User Experience Dipchand Nishar sold 70,875 shares of LNKD stock on 10/01/2012 at the average price of $118.36. Dipchand Nishar owns at least 50,000 shares after this. The price of the stock has increased by 0.4% since.

    Google Inc. (NASDAQ:GOOG): Director L. John Doerr sold 10,966 Shares

    Director of Google Inc. (GOOG) L. John Doerr sold 10,966 shares on 10/01/2012 at an average price of $767.65.

    Google Inc. is a technology company that provides a web based search engine through its website. Google Inc. has a market cap of $251.05 billion; its shares were traded at around $767.65 with a P/E ratio of 22.51 and P/S ratio of 6.62. Google Inc. had an annual average earnings growth of 51.9% over the past 10 years. GuruFocus rated Google Inc. the business predictability rank of 2.5-star.

    On July 19, 2012 Google Inc. announced financial results for the quarter ended June 30, 2012. Google Inc. reported consolidated revenues of $12.21 billion for the quarter ended June 30, 2012, an increase of 35% compared to the second quarter of 2011.

    Executive Chairman of Board Eric E. Schmidt sold 44,742 shares of GOOG stock on 09/26/2012 at the average price of $753. Eric E. Schmidt owns at least 57,384 shares after this. The price of the stock has increased by 1.95% since.

    Profit From Insider Trading
    Insider behavior matters because research based on real-time signals has shown that a properly modeled picture of insider actions can provide the most accurate reflection of the prospects for the company, industry, economic sector, or even the stock market in general, going forward. This makes perfect sense from an intuitive perspective. Corporate insiders possess all the necessary skills and characteristics that one could use to describe the "successful" investor. These include: A deep knowledge and understanding of the company and/or industry; A demonstrated ability to produce success; The training necessary to understand risk and to control it; The wherewithal (capital) to take advantage of opportunity when it presents itself and finally; A tendency to go against the crowd. In general, insider buys are more useful. Since insiders have exclusive information on the company performance, if they are risking their own money on the stock, usually they should have good reasons, especially when several insiders buy the stock at the same time.

    October 08, 2012 - Weekly Top Insider Stock Buys and Sells - Review Entire Article Below

    What Is Legal and Illegal Insider Trading?

    Insider trading can commonly mean two things. Illegal and legal insider trading. In the simplest terms its the buying or selling of a security by someone who has access to material nonpublic information about the security.

    Insider trading can either be legal or illegal. Its illegal when information about a company is not public and any trading done with its stock is unfair to other investors and traders who don't know or have access to the information. So illegal insider trading normally happens when others are informed of such non-public information. Company directors and board members as well as brokers and close relatives can be found guilty of insider trading.

    Legal insider trading is when company information has been made public, then the company insider does not have an advantage over other investors and traders. Part of legal insider trading practices is the filing of all insider transactions with the Federal Securities Exchange Commission. The potential exists for non-insiders to profit from insider buying and selling is to analyze company insiders buy sell transaction reports. If an insider is buying or selling especially in large amounts it could be an indication the companies earnings performance and subsequent stock price could be affected providing reqular investors and traders to profit from.

    Guru Focus

    Stock Picks of Guru Investors
    GuruFocus is dedicated to value investing. As employed by Warren Buffett, the greatest investor of all time, value investing is the only winning strategy for the long term. GuruFocus hosts numerous value screeners and research tools, and regularly publishes articles about value investing strategies and ideas. GuruFocus also publishes three newsletters: Monthly Ben Graham Net-Net, Buffett-Munger Best Bargains and Microcap Magic Formula Stocks.

    Why Track Insiders Buying and Selling Their Own Stock?

    Insider behavior matters because research based on real-time signals has shown that a properly modeled picture of insider actions can provide the most accurate reflection of the prospects for the company, industry, economic sector, or even the stock market in general, going forward.

    This makes perfect sense from an intuitive perspective. Corporate insiders possess all the necessary skills and characteristics that one could use to describe the "successful" investor. These include: A deep knowledge and understanding of the company and/or industry; A demonstrated ability to produce success; The training necessary to understand risk and to control it; The wherewithal (capital) to take advantage of opportunity when it presents itself and finally; A tendency to go against the crowd.

    Further, insider buys are especially useful. Since insiders have exclusive information on the company performance, if they are risking their own money on the stock, usually they should have good reasons, especially when several insiders buy the stock at the same time.

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