U.S. markets closed
  • S&P Futures

    3,836.00
    +26.75 (+0.70%)
     
  • Dow Futures

    31,093.00
    +181.00 (+0.59%)
     
  • Nasdaq Futures

    13,005.50
    +94.50 (+0.73%)
     
  • Russell 2000 Futures

    2,234.30
    +35.10 (+1.60%)
     
  • Crude Oil

    62.48
    +0.98 (+1.59%)
     
  • Gold

    1,736.60
    +7.80 (+0.45%)
     
  • Silver

    26.81
    +0.37 (+1.40%)
     
  • EUR/USD

    1.2093
    -0.0093 (-0.76%)
     
  • 10-Yr Bond

    1.4600
    -0.0580 (-3.82%)
     
  • Vix

    27.95
    -0.94 (-3.25%)
     
  • GBP/USD

    1.3976
    -0.0037 (-0.26%)
     
  • USD/JPY

    106.5040
    +0.2740 (+0.26%)
     
  • BTC-USD

    45,165.51
    -1,431.31 (-3.07%)
     
  • CMC Crypto 200

    912.88
    -20.25 (-2.17%)
     
  • FTSE 100

    6,483.43
    -168.53 (-2.53%)
     
  • Nikkei 225

    28,966.01
    -1,202.29 (-3.99%)
     

Insider Buys 180 Degree Capital's Shares

  • Oops!
    Something went wrong.
    Please try again later.
Benzinga Insights
·2 min read
  • Oops!
    Something went wrong.
    Please try again later.

 

Shares of 180 Degree Capital Inc (NASDAQ:TURN) climbed by 11.4% from the previous closing price. A Form 4 filing filed with the SEC on Wednesday, December 23 showed that President Wolfe Daniel B bought 2,500 shares at an average price of $1.90. The transaction moved the executive's stake in 180 Degree Capital Inc. to 360,000 shares.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."

Transaction Codes To Focus On

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.

Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.