In a victory for common sense, the trading behavior of company executives, directors, and large shareholders in the stocks of firms they're registered "insiders" at have been proven profitable to monitor by both academic studies and (more importantly) the experience of your fellow professional investors.
Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Friday, February 22, 2013 as ranked by dollar value.
Please note, however, that these are factual lists, 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.
In insider purchases, Berkshire Hathaway (BRK-B), a beneficial owner of dialysis services company DaVita HealthCare (DVA), bought $25,967,566 worth of company stock. This follows a significant purchase made last year. John Calamos Sr., Founder, Chairman, and CEO of Calamos Assest Management (CLMS), bought $1,215,350 worth of company stock. At Echo Global Logistics (ECHO), a provider of tech enabled transportation and supply chain management services, Director John Walter bought $598,374 worth of company stock. Jeffrey Flug, a Director of business development company PennantPark Investment Corp. (PNNT), bought $398,601 worth of company stock.
In insider sales, global private equity firm CCMP Capital Advisors, a beneficiary owner of generator manufacturer and designer Generac Holdings (GNRC), sold $692 million worth of company stock. Eric Schmidt, Executive Chairman of Google (GOOG), sold $71,517,083 worth of company stock. At global media holding company News Corp (NWS), Founder, Chairman, and CEO Rupert Murdoch sold $28,852,586 worth of company stock. Sheryl Sandberg, Chief Operating Officer of Facebook (FB), sold $4,875,469 worth of company stock. At multinational multimedia corporation Time Warner (TWX), Chairman and CEO Jeffrey Bewkes sold $4,414,283 worth of company stock.
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.
|1||Berkshire Hathaway||BO||DaVita HealthCare||DVA||B||$25,967,566|
|2||Calamos John P Sr||CB,CEO,BO||Calamos Asset Mgt||CLMS||B||$1,215,350|
|3||Baird W Blake||CB,CEO,DIR||Terreno Realty||TRNO||JB*||$996,000|
|4||Walter John R||DIR||Echo Global||ECHO||B||$598,374|
|5||Flug Jeffrey||DIR||Pennantpark Inv||PNNT||B||$398,601|
|6||Dominski Matthew||DIR||CBL & Assoc||CBL||JB*||$382,500|
|7||Dahl James H||BO||Pope Resources||POPE||B||$231,702|
|8||RGM Capital||BO||Guidance Software||GUID||B||$196,000|
|9||Dreessen Ruth||DIR||Targa Resources||NGLS||B||$121,500|
|10||Teresko Doug||MD||AC Enh Gr & Inc Fd||LCM||B||$97,263|
|2||Automotive Invest||BO||Trw Automotive||TRW||JS*||$544,627,392|
|3||Schmidt Eric E||CB,DIR||GOOG||AS||$71,517,083|
|4||Murdoch Keith R||CB,CEO,DIR||News||NWS||S||$28,852,586|
|5||Culp H Lawrence||PR,CEO,DIR||Danaher||DHR||S||$7,794,995|
|6||Zarley James R||CB,DIR||Valueclick||VCLK||S||$5,336,403|
|8||Bewkes Jeffrey L||CB,CEO,DIR||Time Warner||TWX||AS||$4,414,283|
|10||Vassalluzzo Scott||BO,DIR||World Accept||WRLD||S||$2,715,792|
Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."