Top 5 Market Movers With Insider Buying As Of May 29, 2019

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Includes: AGNC, AT, CYH, MAC, NOG
by: Filing Scanner
Summary

A list of the top 5 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 based 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: AGNC Investment Corp. (NASDAQ:AGNC)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/19

Kain Gary D

$2,021,554 Director, CEO, CIO
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
7% -3% 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. 2: Northern Oil and Gas, Inc. (NYSEMKT:NOG)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/19

Rowling Robert B

$2,058,110 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% 71% 2

We like seeing the cluster buying going on in this name and will be watching it for a reversal of its current downtrend in the coming months.

No. 3: Atlantic Power Corporation (NYSE:AT)

Trade Date Insider Name $ Value of Transaction Insider Title
5/29/19

Cofelice Joseph

$47,300 EVP Commercial Development
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% 2% 1

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: Community Health Systems, Inc. (NYSE:CYH)

Trade Date Insider Name $ Value of Transaction Insider Title
5/28/19

Dinkins Michael

$12,672 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
22% -25% 2

While this insider's purchase is very small, other insiders at the company have purchased close to $4 million worth of stock over the past 3 weeks, which was a relatively large increase in their personal holdings. We will be watching this name closely for a reversal in the current downtrend in the coming month.

No. 5: Macerich Company (NYSE:MAC)

Trade Date Insider Name $ Value of Transaction Insider Title
5/24/19

Coppola Edward C

$192,284 President
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 1

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