Top 10 Market Movers With Insider Buying As Of May 29, 2018

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Includes: ACRX, ALGN, AVDL, GOGO, GPOR, IFF, LGCY, MIC, OPK, VST
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
5/25/18

Frost Phillip Md

$37,000

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. This is Phillip Frost's 52nd purchase of OPK stock of the year making it hard to find any value in this transaction.

No. 2: Gogo (NASDAQ:GOGO)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/18

Townsend Charles

$1,789,895

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
17% -1% 2

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months medium. We like seeing the cluster buying going on following the large price drop earlier this month and expect to see the price start to increase over the following months.

No. 3: Vistra Energy Corp (NYSE:VST)

Trade Date Insider Name $ Value of Transaction Insider Title
5/29/18

Helm Scott B

$4,4790

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
1% 16.7% 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 was triggered by the insider's rule 10b5-1 trading plan. This transaction is a non-event and would not signal a buy for us.

No. 4: Gulfport Energy (NASDAQ:GPOR)

Trade Date Insider Name $ Value of Transaction Insider Title
5/29/18

Westerman Paul D

$103,310

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
39% 4.2% 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. 5: Legacy Reserves LP (NYSE:LGCY)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/18

Baines Creek Capital

$444,800 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% 193.6% 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. Without seeing any other insiders buying we wouldn't consider this for a long-term hold. This insider has been aggressively buying since the beginning of the year with this being their 24th purchase of 2018. Historically their purchases have been followed by a sharp spike up in price. With the last 7 days of almost straight down price action, LGCY looks primed for a short-term bounce with this being the catalyst.

No. 6: AcelRx Pharmaceuticals (NASDAQ:ACRX)

Trade Date Insider Name $ Value of Transaction Insider Title
5/25/18

Asadorian Raffi

$15,923

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
23% -10% 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. 7: Macquarie Infrastructure (NYSE:MIC)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/18

Macquarie Infrastructure Management

$10,090,740

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
4% 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. This transaction is a non-event and would not signal a buy for us.

No. 8: Align Technology (NASDAQ:ALGN)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/18

George Roger

$1,107,904

SVP

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
334% 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. This transaction is a non-event and would not signal a buy for us.

No. 9: International Flavors & Fragrances (NASDAQ:IFF)

Trade Date Insider Name $ Value of Transaction Insider Title
5/25/18

Winder Investment

$12,526,500 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. This transaction is a non-event and would not signal a buy for us. 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. 10: Avadel Pharmaceuticals plc (NASDAQ:AVDL)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/18

Anderson Michael S

$19,320 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
1% -8.7 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.

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, but may initiate a long position in GOGO, LGCY over 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.