Chief Marketing Officer And Svp Of Sun Country Airlines Trades $110K In Company Stock
Brian Davis, Chief Marketing Officer And Svp at Sun Country Airlines (NASDAQ:SNCY), made a large buy and sell of company shares on November 3, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Brian Davis exercised options to purchase 3,000 Sun Country Airlines shares at a price of $5.30 per share for a total of $15,900 on November 3. They then sold their shares on the same day in the open market. They sold at prices ranging from $31.11 to $31.71 to raise a total of $93,474 from the stock sale.
Following the transaction, Davis still owns 1,337 shares of the company, worth $42,951.
Sun Country Airlines shares are trading up 4.51% at $32.12 at the time of this writing on Friday morning.
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The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
Check Out The Full List Of Sun Country Airlines's Insider Trades.
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