Top 10 Market Movers With Insider Buying As Of June 05, 2018

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Includes: ANF, APA, CDEV, DLTR, ETM, GOGO, HD, LKQ, MTDR, ODP
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: Office Depot (NYSE:ODP)

Trade Date Insider Name $ Value of Transaction Insider Title
6/04/18

Vassalluzzo Joseph

$149,881 COB
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
69% 19.6% 2

Based on the pre-set criteria, we would rank the insider's confidence that the price will increase in the following three months High. We would of like to of seen the other 2 insiders that made purchases in the last 30 days buy a larger quantity but we still feel like ODP will continue to trend up based on this data. The stock has become overbought after the last few days of large gains so we would like to see a pullback and some consolidation before buying.

No. 2: Dollar Tree (NASDAQ:DLTR)

Trade Date Insider Name $ Value of Transaction Insider Title
6/05/18

Naylor Jeffrey G

$246,230
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
48% N/A 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. DLTR looks to be setting up for a bounce but we would like to see at least one additional insider buy before we would consider buying.

No. 3: Home Depot (NYSE:HD)

Trade Date Insider Name $ Value of Transaction Insider Title
6/01/18

Linnartz Stephanie

$187,570 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
N/A 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. 4: Abercrombie & Fitch (NYSE:ANF)

Trade Date Insider Name $ Value of Transaction Insider Title
6/05/18

Anderson Kerrii B

$48,051 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
400% 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. 5: Entercom Communications (NYSE:ETM)

Trade Date Insider Name $ Value of Transaction Insider Title
6/01/18

Field Joseph M

$2,769,560 COB
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
5% -13.4% 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 insider did a good job of picking the bottom the last time this stock was in free fall back in May of 2017. It's possible that you may see a short-term bounce on this name but we would not consider holding it for anything more than that.

No. 6: Centennial Resource Development (NASDAQ:CDEV)

Trade Date Insider Name $ Value of Transaction Insider Title
6/01/18

Glyphis George S

$251,777 VP,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
17% 12.4% 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. We would like to see additional insiders buying before we would consider buying.

No. 7: Apache (NASDAQ:APA)

Trade Date Insider Name $ Value of Transaction Insider Title
6/05/18

Lowe John E

$95,871 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
14% 13.2% 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 insider has almost surgical accuracy for timing his purchases when this stock is in a downtrend. His last two purchases were 3/02/18 and 12/14/18 which both times were followed by the stock reversing the next day and beginning a month-long uptrend. We would consider buying just based on this insider's past performance but be aware that the uptrends that follow his purchases never to seem to last longer than a month.

No. 8: LKQ Corporation (NASDAQ:LKQ)

Trade Date Insider Name $ Value of Transaction Insider Title
6/01/18

Jude Justin L

$74,292 SVP Ops
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 until we see other insiders buying.

No. 9: Gogo (NASDAQ:GOGO)

Trade Date Insider Name $ Value of Transaction Insider Title
$745,608 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% N/A 2

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 the continued insider buying following last month's large drop, we would expect to see this continue to start an upward trend.

No. 10: Matador Resources (NYSE:MTDR)

Trade Date Insider Name $ Value of Transaction Insider Title
6/05/18

Macalik Robert T

$19,470 SVP,CAO
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
2% 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 until we see other insiders buying.

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 ETM, GOGO 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.