Top 10 Market Movers With Insider Buying As Of June 14, 2018

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Includes: CPST, CYH, DISCA, LKQ, LLY, MDRX, MELI, MTW, REVG, SJM
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.

No. 1: Discovery Inc (NYSE:DISCA)

Trade Date Insider Name $ Value of Transaction Insider Title
6/12/18

Malone John C

$32,984,995 Director, 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
10% 8.3% 2

Based on the size of the transaction and the cluster buying we believe the price will continue to go up over following months. The stock is currently overbought so we will be waiting for a pullback before we would consider buying.

No. 2: Eli Lilly and Company (NYSE:LLY)

Trade Date Insider Name $ Value of Transaction Insider Title
6/14/18

Skovronsky Daniel

$862,200 SVP,CSO
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
22% N/A 0

Without any additional purchases being made by other insiders this purchase is a non-event and would not trigger a buy for us.

No. 3: Allscripts Healthcare Solutions (NYSE:MDRX)

Trade Date Insider Name $ Value of Transaction Insider Title
6/13/18

Klayko Michael

$50,000 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% -1.8% 0

Without any additional purchases being made by other insiders this purchase is a non-event and would not trigger a buy for us.

No. 4: MercadoLibre (NYSE:MELI)

Trade Date Insider Name $ Value of Transaction Insider Title
6/12/18

Malka Meyer

$14,938,089 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
2900% N/A 0

Based on fillings it appears that this insider has been with the company since 2013 and has not owned any shares up until last month. This one will be a good one to keep an eye to see if any other insiders start buying as well.

No. 5: ProPetro (NYSE:LKQ)

Trade Date Insider Name $ Value of Transaction Insider Title
6/14/18

Zarcone Dominick P

$98,998 Pres,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% 7.4% 1

We would like to see additional insiders buying to consider this for a longer-term hold. On a technical level, the price has entered the recent gap and this filing may give it the push it needs for a short-term push higher.

No. 6: J.M. Smucker Company (NYSE:SJM)

Trade Date Insider Name $ Value of Transaction Insider Title
6/13/18

Smucker Timothy P

$530,450 Chairman Emeritus
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% 5.8 0

With this being such a small purchase in relation to his entire holdings it is hard to believe that he thinks any significant positive changes are coming.

No. 7: REV Group (NYSE:REVG)

Trade Date Insider Name $ Value of Transaction Insider Title
6/13/18

Stephens Barbara H

$15,556 CHRO
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
8% N/A 0

Without any additional purchases being made by other insiders this purchase is a non-event and would not trigger a buy for us.

No. 8: Community Health Systems (NYSE:CYH)

Trade Date Insider Name $ Value of Transaction Insider Title
6/13/18

Dinkins Michael

$24,995 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

Without any additional purchases being made by other insiders this purchase is a non-event and would not trigger a buy for us.

No. 9: Manitowoc Company (NYSE:MTW)

Trade Date Insider Name $ Value of Transaction Insider Title
6/14/18

Pennypacker Barry

$493,722 Pres,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
33% -8.5 0

Without any additional purchases being made by other insiders this purchase is a non-event and would not trigger a buy for us.

No. 10: Capstone Turbine Corporation (NYSE:CPST)

Trade Date Insider Name $ Value of Transaction Insider Title
6/14/18

Brooks Jayme L

$3,975 CFO,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
1% 8.9% 0

This transaction is so small dollar wise it's unlikely that this insider has any real confidence that the price is going to increase with any certainty.

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.