Top Insider Trades May 10, 2012: Netflix Bought By Smart Insiders

| About: Netflix, Inc. (NFLX)
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Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Thursday, May 10, 2012 as ranked by dollar value.

On Today's Tables: Shares of Netflix (NASDAQ:NFLX) are threatening to retest the lows they hit late last year as a result of strategic miscues, concerns of slowing U.S. subscriptions, future competition, and generally poor market price action.

Director Jay Hoag sees value in Netflix' travails, however, buying $14.5 million worth of NFLX earlier this week via Technology Crossover Ventures (TCV), a venture capital firm he helped found.

Mr. Hoag's purchase is significant by virtue of the many smart trades he's already made in NFLX. He was a heavy seller of the stock back in January 2004, uncannily unloading all of TCV's holdings as the stock hit a (then) all-time, split-adjusted high of around $38--just before the stock began to sell off.

In mid 2006, Mr. Hoag backed up the truck and bought back into NFLX for half the price he sold for in 2004. That stake was sold for substantial gains as NFLX had its stellar rise in 2010 and the first half of 2011--the last of it going at the end of July last year for nearly $268 a share. Again, Mr. Hoag seemed to sense that the top was in.

His purchases earlier this week are his first trades in NFLX since exiting last year. And he joins fellow Director Richard Barton, who showed renewed bullishness on April 25th with a large $510k purchase of his own. Mr. Barton is no slouch himself when it comes to trading NFLX. He also exited the bulk of his holdings last July.

Directors Hoag and Barton are clearly no board member cheerleaders. They trade to make money, pure and simple. They also arguably have one of the best seats in the house to make their trading calls from.

Also worth pointing out is that Mr. Hoag sits on numerous boards. So does Mr. Barton. Looking at the recent history of trades for both reveals that the pair clearly believe NFLX is a better relative value than the shares of the other companies they represent. Mr. Hoag has accumulated shares of Electronic Arts (NASDAQ:EA) and ExactTarget (NYSE:ET) recently--but far less than what he invested in NFLX. Both Mr. Hoag and Mr. Barton are selling shares of Zillow (NASDAQ:Z), the firm Mr. Barton Chairs.

Other notable insider transactions from today's tables include:

- ValueAct Holdings buying the dip at Valeant Pharmaceuticals (NYSE:VRX);
- A Director continuing to bottom feed at Build-A-Bear (NYSE:BBW), and;
- CEO buying the pop at Parkway Properties (NYSE:PKY).

About InsiderInsights' Top Trades Tables

Company executives and directors are in the best position to assess the attractiveness of their firms' shares, and here is how many of them are voting their wallets!

Please note, however, that these are factual lists, not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and further analysis of a stock's full insider history may not indicate a significant insider signal.

But at Insider Insights, we find significant insider signals just about every day using screens like these to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (and shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.

So use these regular columns as the initial research tools they are meant to be, and come to InsiderInsights.com to analyze a company's or insider's full insider history. Also feel free to email with any questions on our proprietary insider data, and how it is best analyzed.

 

 

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value Shares Traded Trans Date
To
Ave Trans
Price
Direct
Holdings
Indirect
Holdings
1 Valueact DIR Valeant Pharmaceuticals VRX B $21,369,000 419,000 5/8/12 $51.00 --- 15,514,302
2 Hoag Jay C DIR Netflix NFLX B $14,509,111 200,000 5/9/12 $74.39 --- 130,824
3 Arougheti Michael J PR,DIR Ares Capital ARCC B $1,539,000 100,000 5/9/12 $15.39 353,679 ---
4 Cascade Investment BO Autonation AN B $953,691 27,798 5/8/12 $34.31 15,168,262 ---
5 Leonard Braden Michael DIR,BO Build A Bear Workshop BBW B $724,275 150,000 5/9/12 $4.86 --- 2,350,000
6 Heistand James R PR,CEO,DIR Parkway Properties PKY B $703,521 65,000 5/8/12 $10.82 334,893 ---
7 Merrick Ris BO Merge Healthcare MRGE B $597,979 211,300 5/10/12 $2.83 31,734,936 ---
8 Mark Reuben DIR Cabelas CAB B $355,700 10,000 5/8/12 $35.57 1,159,413 ---
9 Sph Group BO Handy & Harman HNH JB*,B $325,692 24,557 5/9/12 $13.20 7,086,761 ---
10 Kovar Mike VP,CFO Fossil FOSL B $316,582 4,000 5/10/12 $79.15 30,465 ---

Source: InsiderInsights.com | Key to Insider Title and Transaction Type Codes

 

 

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value Shares Traded Trans Date
To
Ave Trans
Price
Direct
Holdings
Indirect
Holdings
1 Pacific Coast Energy BO Pacific Coast Oil Trust ROYT JS* $370,000,000 18,500,000 5/8/12 $20.00 20,083,158 ---
2 Singh Alok DIR Validus Holdings VR S $8,825,319 268,890 5/8/12 $32.82 --- 2,456,110
3 Sordello Steven J VP,CFO Linkedin LNKD AS $5,367,486 50,000 5/8/12 $111.01 --- 0
4 Frink Lloyd D VCB,PR,BO Zillow Z AS $3,453,327 80,400 5/9/12 $43.06 575 1,047,430
5 Edwards Steve VP Neustar NSR AS $2,995,755 86,333 5/8/12 $34.70 42,977 ---
6 Wight Russell B Jr DIR Vornado Realty Trust VNO S $2,626,980 30,000 5/9/12 $87.57 432,070 ---
7 Sanford John CTO Ubiquiti Networks UBNT S $2,459,371 100,000 5/8/12 $25.53 480,545 ---
8 Rafael Betsy VP,CT Apple AAPL S $1,690,243 2,954 5/9/12 $572.19 114 ---
9 Wright Bruce R VP,CFO,SEC Ultratech UTEK S $1,246,275 41,730 5/9/12 $29.87 114,793 ---
10 Moellering Matthew C VP,COO Express EXPR AS $901,150 39,000 5/9/12 $23.11 256,295 ---

Source: InsiderInsights.com | Key to Insider Title and Transaction Type Codes

Disclosure: I am long PKY.