U.S. Markets closed
  • S&P 500

    3,271.03
    -119.65 (-3.53%)
     
  • Dow 30

    26,519.95
    -943.24 (-3.43%)
     
  • Nasdaq

    11,004.87
    -426.53 (-3.73%)
     
  • Russell 2000

    1,543.28
    -47.20 (-2.97%)
     
  • Crude Oil

    37.38
    -2.19 (-5.53%)
     
  • Gold

    1,877.40
    -34.50 (-1.80%)
     
  • Silver

    23.42
    -1.15 (-4.66%)
     
  • EUR/USD

    1.1751
    -0.0039 (-0.3290%)
     
  • 10-Yr Bond

    0.7810
    +0.0030 (+0.39%)
     
  • Vix

    40.28
    +6.93 (+20.78%)
     
  • GBP/USD

    1.2985
    -0.0056 (-0.4311%)
     
  • USD/JPY

    104.2570
    -0.2370 (-0.2268%)
     
  • BTC-USD

    13,182.75
    -18.74 (-0.14%)
     
  • CMC Crypto 200

    260.43
    -12.26 (-4.50%)
     
  • FTSE 100

    5,582.80
    -146.19 (-2.55%)
     
  • Nikkei 225

    23,418.51
    -75.79 (-0.32%)
     

Insider Sells Mercury Systems Shares

Benzinga Insights
·2 mins read

VP CAO Mccarthy Michelle M filed a Form 4 with the SEC on Monday, August 24. The insider sold 975 shares of Mercury Systems Inc (NASDAQ:MRCY) at an average price of $76.14. After the transaction, the executive's stake in Mercury Systems Inc. moved to 11,072 shares. Mercury Systems was trading 0.1% higher from the previous closing price.

Why Insider Transactions Are Important?

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.

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."

Important Transaction Codes

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 other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.

See more from Benzinga

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