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 15, 2013.
Purchases: James Gero, a Director of medical device company Orthofix International (OFIX), bought 20,000 shares of company stock for $527,444. Orthofix specializes in the design, development, manufacture, marketing, and distribution of medical equipment used by musculoskeletal medical specialists for orthopedic and spine treatments. On May 8 the company released earnings for Q1 2013, reporting a adjusted net income per share of $0.23, down 66% from Q1 2012, and net sales of $100.3 million, down 14%. The earnings call saw the stock's price drop from just over $32 on May 8 to $26.75 at 10 a.m. on May 9. The stock has not recovered and currently trades at $26.27, down 33.64% year-to-date and 34.57% since this time last year.
Jon Luther, a Director of theme park company Six Flags Entertainment Corp. (SIX), bought 5,000 shares of company stock for $389,608. Luther also serves as the non-executive Chairman of the Board of Dunkin Brands Group (DNKN). Six Flags operates 18 theme parks, 16 of which are in the US, the other two being in Montreal, Canada and Mexico City. On May 8, the company announced it had approved a two-for-one split of company common stock to be issued via a stock dividend. Shareholders of record on June 12 will receive one share for each outstanding share on June 26. Additionally, the company announced a quarterly dividend of $0.90 payable on June 10 to shareholders of record as of May 30. The company's stock price is up 28.86% YTD and 70.66% since this time last year.
Sales: The global private equity firm Advent International LLC sold 24,318,394 shares of holding company Vantiv (VNTV) for $557,348,416. Vantiv operates through its majority-owned subsidiaries Vantiv Holding, LLC and Transactive Ecommerce Solutions Inc, providing electronic payment processing services to businesses and financial institutions. On May 15, the company closed a secondary public offering of 40,714,704 shares at the price of $23.75, and also announced the closing of a debt refinancing program. The company's stock price is up 23.16% YTD and 14.47% since this time last year.
Apax Managers sold 1,250,000 shares of software company RealPage, Inc. (RP) for $24,062,500. RealPage provides the rental housing industry with on-demand software solutions for sales and marketing, property management, asset optimization, billing and utility management, etc. On May 2 the company reported Q1 2013 earnings, with adjusted net income of $0.13 per share, up 30% year-over-year, and revenue of of $89 million, up 19.4%. The company's stock price is down 9.92% YTD and is up 6.23% since this time last year.
|1||Wp X Biologics||DIR,BO||China Biologic||CBPO||JB*||$62,258,400|
|2||Glenhill Advisors||BO||Lionbridge Tech||LIOX||B||$1,367,548|
|3||RGM Capital||BO||Guidance Software||GUID||B||$585,440|
|4||Gero James||DIR||Orthofix Intl||OFIX||B||$527,444|
|6||Baker Phillips S||PR,CEO,DIR||Hecla Mining||HL||B||$478,260|
|7||Luther Jon L||DIR||Six Flags Ent||SIX||B||$389,608|
|8||Lien Christopher||CEO,DIR||Marin Software||MRIN||B||$246,544|
|9||Clarke John K||DIR||Verastem||VSTM||AB||$243,375|
|10||Frost Phillip Md||CEO,CB,BO||Opko Health||OPK||B||$243,339|
|2||Anderson Fred D||DIR,BO||YELP||YELP||S||$62,288,324|
|5||Doerr L John||DIR||GOOG||AS||$4,167,190|
|6||Moreland W Ben||PR,CEO,DIR||Crown Castle||CCI||S||$3,981,395|
|7||Scorsone Luke V||VP||Chicago Bridge||CBI||AS||$3,761,314|
|8||Bell Leonard||CEO,DIR||Alexion Pharm||ALXN||AS||$3,289,759|
|9||Stadium Capital||DIR,BO||Big 5 Sporting||BGFV||S||$3,089,380|
|10||Weeden Jeffrey B||CFO||Keycorp New||KEY||S||$2,864,880|
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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