Insider purchases

Insider purchases

Large Insider Purchases on May 14, 2019 – May signal future stock appreciation. Words of caution. COTY KMI UGI MIST NMRK NS TRGP INOV UFI GTES NLY TWOU LILA

Insider purchases

(Cambridge, MA) — There have been a few notable insider purchases on May 14, 2019. Please, see list below for detail.

You may recall that an officer, director or owner of 10% or more of a class of a company’s securities must report any trade to the Securities and Exchange Commission within two business days. Why track large insider purchases by CEOs and other key executives?

The Rationale for Tracking Large Insider Purchases on May 14, 2019

Large equity purchases (resp. sales) by insiders, particularly presidents and CEO’s and other key managers, are considered bullish (resp., bearish). However, they only constitute a secondary indicator. Earnings, earnings, where are you? This said, insider transactions signal that insiders at public companies (well, some of them anyway) believe that now is not a bad time to accumulate or liquidate shares. Maybe they see something coming…

Words of Caution: Insider Purchases on May 14, 2019 Aren’t Bulletproof…

Remember Warren Buffet’s words of caution. “With enough insider information and a million dollars, you can go broke in a year.” Insiders are biased and sometimes can’t seem to see the light. Remember Molycorp? Well, I’d rather not either. The firm went bankrupt a few years back. Insiders who had accumulated a huge amount of shares over time lost a lot of money. Examples abound of such counter-intuitive developments. Biotech is a sector where insiders take huge bets. However, quite a few, specially at small developmental or non-commercial outfits, will end up in disaster. Meanwhile, some firms left nearly dead (whose shares insiders do occasionally accumulate) may experience incredible resurrections. Just beware of the risks. In sum, always be prudent.

Solid risk management practices : Large Insider Purchase s on May 14, 2019 Are Great, But Even Insiders Can Be Wrong

What can you do to help control risk? Firstly, and most importantly, check out the firm’s financials: revenue trajectory and earnings growth. Present, past, and future. These are the top and bottom lines. The better the numbers, the more compelling the opportunity. A poor performance matrix along these lines (both revenue and profit) may raise a red flag. Then, check out the management team. Have a look at background, shareholder friendliness, track record of stock appreciation, experience at striking M&A deals, etc. Then, assess whether the firm enjoys some competitive advantage (moat). What is the market like? Further, analyze prospects of a turnaround (if applicable). And so forth. Only when all or at least many factors align may you consider buying.

Large Insider Purchases on May 14, 2019

To sum it up nicely, the market goes down, insiders buy… Lots of energy plays. The size of purchases at Coty, where the CEO is new, is a standout.

Coty, Inc. (COTY)

The beauty company operates through four segments: Fragrances, Color Cosmetics, Skin & Body Care and Brazil Acquisition. Major ins > at Joh. A. Benckiser GmbH. In addition, Mr. Harf is a Director of Jacobs Douwe Egberts, Panera Holdings Corp., Panera Bread Company, Keurig Dr Pepper Inc., Krispy Kreme Doughnuts, Inc. and Caribou Coffee Company, Inc. Director Olivier Goudet also bought. FMR, LLC (nearly 8% of the firm), Franklin Resources, and Vanguard are institutional holders.

Kinder Morgan, Inc. (KMI)

Executive Chairman Richard Kinder bought more stock, around $5.8 million worth at an average of $19.53 a share. This is only one of many large insider purchases that has occurred in the utility/energy sector over the past couple of months. The energy sector is one of the cheaper verticals right now. Check out my take on Seeking Alpha.

UGI Corporation (UGI)

UGI Corporation is a holding company, which distributes, stores, transports and markets energy products and related services. Another energy play… A director bought more than $5.4 million worth of stock at $54.10 per share.

Milestone Pharmaceuticals Inc. (MIST)

Milestone Pharmaceuticals Inc. is a Canada-based clinical-stage pharmaceutical company and recent IPO. A 10% owner acquired $5 million worth of stock at $15 a share.

Newmark Group, Inc. (NMRK)

Newmark Group, Inc. is a commercial real estate services company. The Company is focused on offering products and services to both owners and occupiers across the entire commercial real estate industry. The CEO bought more than $4.3 million worth of stock at around $7.75 a share.

Targa Resources Corp. (TRGP)

Targa Resources Corp. is a midstream energy company in North America. A director bought $2 million worth of stock at $39.43 a share.

NuStar Energy L.P. (NS)

NuStar Energy L.P. is engaged in the transportation of petroleum products and anhydrous ammonia; the terminalling and storage of petroleum products, and the marketing of petroleum products. Chairman William Greehey bought for around $1.9 million worth of stock @ $28.38 per share.

  • Inovalon Holdings, Inc. (INOV) I novalon Holdings, Inc. is a technology company. The Company prov >stock at around $13.40 per share . FMR, BlackRock and VanGuard all own more than 5% of the shares…
  • Insider Purchases Of A More Limited Scope (but in the $1 million to $500,000 range) Occurred on May 14,2019 at:

    1. Unifi, Inc. (UFI)
    2. American Finance Trust, Inc. (AFIN)
    3. Gates Industrial Corporation plc (GTES), a manufacturer of power transmission and fluid power solutions. The COO bought around $1 million worth of stock a hair above $13 per share.
    4. Annaly Capital Management, Inc. (NLY), a mortgage real estate investment trust (REIT). The Chief Investment Officer bought $1 million worth of stock at $9.56 per share.
    5. Air Transport Services Group, Inc. (ATSG)
    6. Cortexyme, Inc. (CRTX)
    7. Cannae Holdings, Inc. (CNNE)
    8. 2U, Inc. (TWOU) – 2U, Inc. is a provider of an integrated solution consisting of cloud-based software-as-a-service (SaaS) combined with technology-enabled services (together, the Platform) that allows colleges and universities to deliver online degree programs. Director Greg Peters, who assumed the role of Chief Product Officer of Netflix in July 2017 and leads the product team, bought $500k worth of shares at $40.15 per share.
    9. Liberty Latin America Ltd (LILA) – The President and CEO, and the CFO both bought.
    10. Endurance International Group Holdings, Inc. (EIGI)
    11. XOMA Corporation (XOMA) .

    1. Financial Freedom Wiz provides no advice of any kind.
    2. Please, do your own diligence; you invest at your own risk


    Insider purchases


    Insider purchases

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