Welcome to our daily round-up of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Wednesday, April 3, 2013.
Purchases: The privately owned hedge fund Starboard Value LP, managed by Jeffrey Smith, bought 1,425,000 shares of data management company Quantum Corporation (QTM), for $1,773,873. Quantum specializes in backup, recovery, and archive solutions for small businesses and multinational corporations alike. The company's stock price is down about 53% since this time last year.
The Florida-based hedge fund RGM Capital bought 127,700 shares of cloud-based services and software solutions company Support.com (SPRT), for $505,538. The company provides help desk IT professionals with programs and services that allow them to quickly diagnose and repair software failures. The company announced today that it plans to release earnings results for Q1 2013 on Wednesday, May 1.
Najeeb Ghauri, the Chairman and CEO of enterprise applications and IT solutions provider NetSol Technologies (NTWK), bought 7,000 shares of company stock for $90,440, upping his total stake to 301,955 shares, worth $3,901,259. The company designs, develops, markets, and exports software to companies in several industries, including automobile finance and leasing, banking, health care, and financial services.
Sales: At semiconductor company Broadcom (BRCM), Chairman and CTO Henry Samueli sold 75,000 shares of company stock for $2,594,018. The company specializes in semiconductor solutions for wired and wireless communication, offering products for voice, video, data, and multimedia connectivity. Broadcom recently collaborated with Korean semiconductor company SK Telecom Co. (SKM) to launch the first 5G WiFi hotspot router. The device is 3 times faster than previous routers and helps alleviate stress on cellular spectrum by off loading data traffic to the WiFi network.
|3||Frost Phillip MD et al||CEO,CB,BO||Opko Health||OPK||B||$681,642|
|4||RGM Capital||BO||Support Com||SPRT||B||$505,538|
|5||Blue Jonathan S||O||Industrial Services||IDSA||JB*||$500,000|
|6||Cameron R Bruce||CB,DIR||Hf2 Financial||HTWO||JB*||$229,630|
|7||Redding Kim G||PR,DIR||Brkfld Mort Op Inc||BOI||B||$100,000|
|8||McGinn Paul||CEO,DIR||Cig Wireless||CIGW||JB*||$100,000|
|9||Cochran Sandra||DIR||Dollar General||DG||B||$99,201|
|10||Ghauri Najeeb||CB,CEO,DIR||NetSol Tech||NTWK||B||$90,440|
|4||Bell Leonard||CEO,DIR||Alexion Pharm||ALXN||AS||$4,154,751|
|5||Sze David L||DIR||LNKD||AS||$2,776,596|
|7||Stuart Robert J||VP,SO||Hertz Global||HTZ||AS||$2,165,232|
|8||Barfield Lowry||VP,GC,SEC||Western Refining||WNR||AS||$2,161,298|
|10||Eckroth Joseph||VP,CIO||Hertz Global||HTZ||AS||$1,658,300|
In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders."
Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.
At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or 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.
Jonathan Moreland is also the author of "Profit From Legal Insider Trading."
Follow me on Twitter: @JoshWolonick and @Minyanville
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