Top 10 Market Movers With Insider Buying As Of May 23, 2018

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Includes: CORE, ENT, FMSA, IFF, JEC, MIC, NBRV, OPK, QTS, RDUS
by: Filing Scanner

Summary

A list of the top 10 stocks in terms of total volume traded that also had insider buying.

We provide in-depth analysis and ratings of each transaction.

Only insider transactions that were executed on the open market are included in this list. Any sale that was triggered by an option exercise has been excluded.

There are many ways to use insider transactions to help guide your investing strategies that don't rely on just the dollar amount of the transaction. While dollar amount should always be considered when ranking an insider purchase, here are a few other things to consider:

  1. How much has the insider's total stake increased in the company after the purchase?
  2. How has the stock performed historically after this insider made a purchase?
  3. Have other insiders at this company also made purchases recently?

In this article, we will analyze the top 10 stocks in terms of total volume traded that also had an insider make a purchase of the stock on the open market (transaction code P on SEC Form 4). We will be ranking each insider purchase base on the following criteria:

  1. Did the insider increase his/her total holding size by a significant amount (over 15%)?
  2. What was the three-month return of the insider's last purchase (over 10% gain in 90 days)?
  3. Have other insiders at this company made purchases in the last 30 days (two other insiders)?

The goal of this exercise is to help determine the insider's confidence level in their company and to determine if you should be buying alongside them. We will be ranking each transaction on what we perceive the insider's confidence level to be using a scale of high, medium and low.

No. 1: OPKO Health (NASDAQ:OPK)

Trade Date Insider Name $ Value of Transaction Insider Title
5/22/18

Frost Phillip

$37,300

CEO,COB, 10% Owner

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
0% 5.61% 1

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. With this being Phillip Frost's 50th purchase of OPK stock in 2018 alone it makes it hard to find any value in this transaction.

No. 2: Fairmount Santrol (NASDAQ:FMSA)

Trade Date Insider Name $ Value of Transaction Insider Title
5/22/18

Biehl Michael F

$3,904

EVP,CFO

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
0% 45.9% 0

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. This transaction is too small making it a non-event and would not signal a buy for us.

No. 3: Macquarie Infrastructure (NASDAQ:MIC)

Trade Date Insider Name $ Value of Transaction Insider Title
5/22/18

Macquarie Infrastructure Management

$7,136,808

Director

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
3% N/A 0

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. While this was a large purchase in terms of total dollars, nothing else about it gets us excited and we would not recommend buying based on this information.

No. 4: Global Eagle Entertainment (NASDAQ:ENT)

Trade Date Insider Name $ Value of Transaction Insider Title
5/21/18

Searchlight II Tbo-W, L.P.

$1,948,369

10% Owner

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
190% N/A 10

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months HIGH. There has been strong insider buying in this name following last week's earning results. We feel this name is poised for growth over the coming months. With the price up over 100% in the last 5 days of trading, the stock has become overbought and we will be looking for a pullback before buying.

No. 5: Radius Health (NASDAQ:RDUS)

Trade Date Insider Name $ Value of Transaction Insider Title
5/21/18

Biotech Growth N V

$1,756,380

10% Owner

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
1% -10.2% 0

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. This transaction is a non-event and would not signal a buy for us.

No. 6: Nabriva Therapeutics (NASDAQ:NBRV)

Trade Date Insider Name $ Value of Transaction Insider Title
5/23/18

Broom Colin Md

$46,000

CEO

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
6% -33% 3

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. While there are several other insiders buying following Monday's news none of them have bought a significant amount of stock. This would not be a buy for us at this time but we will be keeping an eye on it for future insider purchases.

No. 7: QTS Realty Trust (NASDAQ:QTS)

Trade Date Insider Name $ Value of Transaction Insider Title
5/21/18

Williams Chad L

$2,188,014

CEO

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
32% 15.2% 3

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months HIGH. Several insiders buying and making large increases in their total holding we expect to see the price higher in the next few months.

No. 8: International Flavors & Fragrances (NASDAQ:IFF)

Trade Date Insider Name $ Value of Transaction Insider Title
5/22/18

Winder Investment

$12,529,080

10% Owner

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
1% 7.2% 1

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. While this was a large purchase in terms of total dollars, we would still like to see 1 or 2 more insiders buying before we would consider buying ourselves.

No. 9: Macquarie Infrastructure (NASDAQ:JEC)

Trade Date Insider Name $ Value of Transaction Insider Title
5/22/18

Thompson Christopher M.T.

$256,393

Director
Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
35% -7.7% 0

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. This transaction is a non-event and would not signal a buy for us.

No. 10: Core-Mark Holding Company (NASDAQ:CORE)

Trade Date Insider Name $ Value of Transaction Insider Title
5/23/18

Allen Robert A

$92,200

Director

Change in Insider's Total Holding Insider's Previous Purchase 90-Day Return Number of Other Insiders at Company Making Purchases in Last 30 days
11% N/A 3

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months low. There are several insiders buying this week but we would have like to see them making larger purchases before we would feel comfortable buying ourselves.

As you can see, finding an insider transaction that meets even these basic criteria can be like finding a needle in a haystack. Along with the criteria we have used here, we also like to analyze the price action of the stock to help time the entry and take a deeper dive into the insider's previous returns following a purchase.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.