Insiders reported that on Friday, January the 13th, they bought and sold stock in over 225 separate transactions in over 110 different companies. These transactions have to be reported within two days of the trade, so the transactions occurred sometime near the middle to end of last week. We culled through these 225 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 Friday; 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 (for more info on how to interpret insider trades, please refer to the end of this article):
Achillion Pharmaceutical (NASDAQ:ACHN): ACHN is a clinical-stage biotech focused on developing new treatments to patients with infectious diseases, including HIV, hepatitis C and resistant bacterial infections. On Friday, CEO Michael Kishbauch filed SEC form 4 indicating that he exercised options and sold the resulting 198,306 shares for $2.5 million under a 10b5-1 plan. This is on top of the $1.7 million sale that we reported Wednesday by CEO Kishbauch and four other insiders, so that over the last three trading days alone, insiders have reported selling a total of 0.36 million shares for $4.2 million. Overall insiders sold 1.1 million shares in the past year. ACHN rallied strongly last week, up over 50%, after Bristol-Myers Squibb (NYSE:BMY) announced an agreement to buy Inhibitex (NASDAQ:INHX) for $2.5 billion at a massive buyout premium of over 160%, triggering a rally in ACHN and its peer in the hepatitis C space, Idenix Pharmaceuticals (NASDAQ:IDIX).
Seagate Technology (NASDAQ:STX): STX manufactures hard disk drives for the enterprise, desktop, mobile computing, and consumer electronics markets. On Friday, three insiders reported selling a total of 136,666 shares for $2.6 million under 10b5-1 plans. This included Chairman & CEO Stephen Luczo (20,000 shares), EVP Robert Whitmore (50,000 shares), and EVP William Mosley (66,666 shares). This is on top of the 150,000 shares that we reported just earlier in the week on Monday that insiders sold, so that insiders have reported selling a total of 0.29 million shares for $5.3 million just in the past three trading days. In comparison, insiders have sold a total of 2.94 million shares in the past year. The strong pick-up in selling has coincided with the recent run-up in the stock in the last week after the company announced strong guidance the prior week, stating that it expected Q2 (December 2011) revenues at $3.1-$3.2 billion and Q3 (March 2012) revenues at $4.2-$4.5 billion versus the consensus estimates of $2.8 billion and $3.8 billion respectively.
DuPont De Nemours & Co. (NYSE:DD): DD manufactures agricultural, food, building, communications, construction, electronics and other products and raw materials. On Friday, EVP Thomas Connelly filed SEC Form 4 indicating that he exercised options and sold the resulting 54,648 shares for $2.6 million, under a 10b5-1 plan. Overall, insiders sold a total of 535,710 shares in the past year. Also, after the sale, EVP Connelly had 178,770 shares in direct and 1.7 million shares in indirect holdings in the company. DD trades at 11-12 forward P/E and 3.9 P/B compared to averages of 10.8 and 2.6 for the diversified chemicals group.
UnitedHealth Group Inc. (NYSE:UNH): UNH is a diversified health and well-being company, serving more than 70 million Americans. On Friday, EVP & CEO of UnitedHealthcare Gail Boudreaux filed SEC Form 4 indicating that she exercised options to acquire 0.17 million shares, and sold 106,402 of those shares for $5.6 million, under a 10b5-1 plan. Overall, insiders sold 2.2 million shares in the past year. Also, after the sale, EVP Boudreaux had 190,105 shares in direct and 15,000 shares in indirect holdings in the company. UNH stock currently trades near its highs for the year, at a premium 11 forward P/E and 2.0 P/B compared to averages of 10.5 and 2.0 for its peers in the HMO group.
PNC Financial Services Group (NYSE:PNC): PNC operates as a diversified financial services company, offering retail banking, corporate and institutional banking, asset management, and residential mortgage banking services, via 2,470 branches in PA, NJ, DE, Washington D.C., and ten other states. On Friday, EVP & Chief HR Officer Joan Gulley filed SEC Form 4 indicating that she exercised options and sold the resulting 42,750 shares for $2.65 million, under a 10b5-1 plan. This is on top of the 315,800 shares that we reported just last week that insiders sold for $18.7 million. Overall, insiders sold a total of 0.43 million shares in the past year, so the recent selling is an acceleration of the average selling over the past year. PNC trades at 9-10 forward P/E and 0.9 P/B compared to averages of averages of 8.7 and 0.8 for its peers among major regional banks.
Vivus Inc. (NASDAQ:VVUS): VVUS is a biopharmaceutical company developing therapeutic products to address unmet medical needs in obesity, diabetes and sexual health. On Friday, President Peter Tam filed SEC Form 4 indicating that he sold 27,014 shares for $0.32 million, under a 10b5-1 plan. This is on top of the 82,086 shares we reported just earlier in the week that insiders sold for $1.0 million. Overall, insiders sold a total of 0.13 million shares in the past year, so the recent selling is an acceleration of the average selling over the past year. VVUS shares have mounted a strong rally since the beginning of the year, up about 25% YTD, most of it last week after the company announced on Monday morning that the FDA asked the company to remove the Qnexa contraindication for women of childbearing potential contained in the proposed label. The company is on schedule on February 22nd this year for a decision by the FDA's Endocrinologic and Metabolic Drugs Advisory Committee of its New Drug Application for Qnexa for the treatment of obesity.
On top of these, some additional large insider trades on Friday included a $2.0 million sale by Director Arthur Ryan at biotech Regeneron Pharmaceutical (NASDAQ:REGN); and a $9.5 million sale by four insiders (CFO Jeffrey Naylor, CEO Carol Meyrowitz, Director Amy Lane and President Ernie Herrman) at apparel and home fashions retail store chain operator TJX Companies Inc. (NYSE:TJX).
Credit: Fundamental data in this article were based on SEC filings, I-Metrix® by Edgar Online®, 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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