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 Wednesday, May 22, 2013.
Purchases: The medical-centric investment firm Orbimed Advisors bought 680,471 shares of biopharmaceutical company Ambit Biosciences (AMBI) for $5,421,873. Ambit focuses on the discovery, development, and marketing of drugs that are intended for unmet medical needs in oncology, autoimmune, and inflammatory diseases. The company's leading drug candidate is quizartinib, a treatment for patients with relapsed/refractory acute myeloid leukemia that is in Phase 2b of clinical development. The company had an initial public offering on May 16, with 8,125,000 shares offered at $8 per share. Earlier in May, the news was that the shares would be priced between $13 and $15 for 4.6 million shares. Now, the stock's price is trading at $7.37, up 9.19% for the day, but still down 12.24% from its initial $8.09.
Spiro Rombotis, the President of Cyclacel Pharmaceuticals (CYCC), bought 100,000 shares of company stock for $300,000. Using a proprietary technique of antibody engineering, Cyclacel develops therapies and drugs that utilize the power of the immune system to treat cancer and other serious illnesses. The company's lead drug candidate is sapacitabine, which interferes with DNA synthesis to inhibit the growth of cancer and is in Phase 3 of study now. On May 21, the company announced it had closed an underwritten offering of 6,833,334 shares of common stock at $3 per share for net proceeds of about $19 million. The company intends to use these proceeds to complete the pivotal Phase 3 trial of sapacitabine. The company's stock price is down 50.66% year-to-date and down 9.1% since this time last year.
Sales: Home furnishings retailer Restoration Hardware (RH) saw two sales, with former Chairman and Co-CEO Gary Friedman selling 798,028 shares of company stock for $39,901,400 and CEO Carlos Alberini selling 329,536 shares for $16,476,800. Friedman stepped down last August before his company's IPO after a reported affair with a female employee. A holding company, Restoration Hardware's business is integrated across multiple channels of distribution, including, stores, catalogues, and websites. On May 20, the company announced the closing of a public follow-on offering of 9,974,985 shares of common stock at a price of $50 per share (the company had an IPO in November 2012). The company's stock value is up 54.31% YTD, having seen much of that gain from the end of April with a strong earnings report. Since its IPO last fall, the company's stock price has increased 67.36%.
Dennis Wilson, the Founder of Canadian athletic apparel company Lululemon Athletica (LULU), sold 377,415 shares of company stock for $30,824,472. The Vancouver-based company manufactures, sells, and distributes technical athletic clothing and yoga apparel; it works with athletes to create designs meant to meet their specific needs. Lululemon has been through a tumultuous few months, having to recall 17% of its yoga pants late last year for being see-through, and facing lawsuits and litigation from shareholders over an increase in executive pay a week before the recall. In the last three months, the company's stock price has increased by 17.09%, and it is up 8.33% since this time last year.
|1||Orbimed Advisors||BO||Ambit Biosciences||AMBI||JB*,B||$5,421,873|
|2||Raspino Louis||DIR||Chesapeake Energy||CHK||B||$525,466|
|3||Frost Phillip Md||CEO,CB,BO||Opko Health||OPK||B||$514,081|
|4||Silver Point Capital||BO||Cooper Standard||COSH||B||$318,388|
|5||Rombotis Spiro G||PR,DIR||Cyclacel Pharm||CYCC||JB*||$300,000|
|7||Florance Andrew C||DIR||Walker & Dunlop||WD||B||$237,493|
|8||Nelson Glen D||DIR||Cardiovascular Sys||CSII||B||$189,359|
|10||Shustek Michael V||PR,CEO,DIR||Vestin Rlty Mort||VRTB||JB*||$145,787|
|1||Friedman Gary G||BO||Restoration Hardware||RH||JS*||$39,901,400|
|2||Wilson Dennis J||DIR,BO||Lululemon Athletica||LULU||AS||$30,824,472|
|3||Alberini Carlos||CEO,DIR,BO||Restoration Hardware||RH||JS*||$16,476,800|
|4||Foster Paul L||CB,DIR,BO||Western Refining||WNR||S||$16,196,461|
|6||Russell John G||PR,CEO,DIR||Cms Energy||CMS||S||$7,187,750|
|7||Empire Capital Mgt||BO||Keynote Systems||KEYN||S||$4,659,512|
|8||Tredwell Daniel P||DIR||Trimas||TRS||S||$4,092,000|
|9||Kerley Gregory D||DIR||Southwestern Energy||SWN||S||$3,950,220|
|10||Comas Daniel L||VP,CFO||Danaher||DHR||S||$3,514,060|
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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