Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Thursday, May 16, 2013.
Purchases: The investment management firm Paulson & Co., founded by hedge fund manager John Paulson, bought 352,205 shares of directory and marketing company Dex Media (DXM) for $5,974,475. Dex Media, based in Cary, North Carolina, publishes and markets directories, including the Yellow Pages and White Pages, and also offers marketing solutions to local businesses. On April 30, Dex One Corp. and marketing company SuperMedia Inc. completed their merger, forming Dex Media. As Peter McDonald, President and CEO of the new company, said at the announcement, "Dex Media is positioned to help businesses across the country grow, with over 2,700 marketing consultants already advising approximately 665,000 local businesses across social, local, and mobile media." Since it was initiated on the Nasdaq (^IXIC) on May 2, the new company's stock price has increased 72.09%.
The holding company Harbinger (HRG) bought 55,100 shares of diversified products company Spectrum Brands (SPB) for $3,278,093, increasing its total stake to 30,569,786 shares. Spectrum has a diversified and successful array of brands, including Black & Decker hardware, the George Foreman grill, Rayovac batteries, and Remington hair grooming products. In eleven purchases, Harbinger has purchased 652,200 shares of Spectrum since April 9, 2013. Since then, the stock's value has increased 5.94% to $59.73 at today's open. It is up 32.94% year-to date, and it is up 84.69% since this time last year.
Felix Baker, a Director of molecular diagnostic company Genomic Health, Inc. (GHDX), bought 71,439 shares of company stock for $2,603,787. Genomic Health specializes in the development and commercialization of genomic tests and lab services that analyze the underlying biology of cancer and inform treatment decisions for the physician and patient. On May 7, the company announced it would be selling its Oncotype DX test for prostate cancer patients, having introduced it in 2004 for breast cancer. On May 10, the company announced it would be expanding its coverage policy for the Oncotype DX Breast Cancer test to all qualified Medicare patients with ductal carcinoma in situ (DCIS). The majority of women who have DCIS detected undergo breast-conserving surgery without radiotherapy and do not redevelop a local recurrence. The Oncotype DX test can also predict a 10-year recurrence. In the past month, the company's stock price has jumped up 25.51%, and it is up 35.83% YTD.
Sales: TD Luxembourg International Holdings sold 15,000,000 shares of its parent company TD Ameritrade (AMTD), for $325,800,000. TD Ameritrade provides securities brokerage services, as well as technology-based financial services, to investors, traders, and registered investment advisors. On May 14, the day the company launched its new ETF Knowledge Center, shares of the company's stock reached a new high of $22.85. The ETF Knowledge Center provides a wide range of education and information on ETFs, investment strategies fit to the current market, and even tests that allow investors to take stock of their ETF grasp. At the current price of $22.64, the stock is up 34.15% YTD, and it is up 31.56% since this time last year. Growth can be attributed to strong 2Q fiscal 2013 results, lower expenses, an improved balance sheet, and a strong capital position.
|1||Paulson & Co||BO||Dex Media||DXM||B||$5,974,475|
|3||Baker Felix||DIR,BO||Genomic Health||GHDX||B||$2,603,787|
|5||Chatila Ahmad R||PR,CEO,DIR||Memc Electronic||WFR||JB*,B||$407,075|
|6||Jornayvaz Robert||CB,DIR,BO||Intrepid Potash||IPI||B||$348,761|
|7||Fulton Stephen P||FO||Western Asset Mtge||WMC||B||$204,191|
|10||Morgan John L||CB,CEO,BO||Winmark||WINA||B||$121,780|
|1||TD Luxembourg||BO||Td Ameritrade||AMTD||JS*||$325,800,000|
|2||TC IV||BO||SS&C Tech||SSNC||JS*||$240,112,496|
|3||Summit Ventures||BO||Fleetcor Tech||FLT||JS*||$205,950,000|
|4||Glenview Capital||BO||Tenet Healthcare||THC||JS*||$191,000,000|
|5||Rowan Marc J||MD,DIR,BO||Apollo Global Mgt||APO||JS*||$107,874,488|
|6||Av Partners VIII||BO||Homeaway||AWAY||S||$48,517,264|
|7||Natural Gas Part||BO||Resolute Energy||REN||JS*||$43,500,000|
|9||Smith Robert E||DIR,BO||Sinclair Broadcast||SBGI||JS*||$22,887,424|
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."
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