by Troy
In the coming weeks I will show you how to use corporate insider trading data to improve your trading performance. In the meantime, here are 4 stocks that CEO’s heavily bought last week. All purchases exceeded $100k.
Insiders sell for many reasons (gift, divorce, diversification), but they buy for only one reason. They buy when they believe that the stock price will go up.
Steel Partners (SPLP)
Steel Partners engages in banking, manufacturing, restaurants, defense, and finance. It saw significant insider buying last week from its CEO (Warren Lichtenstein), President (Jack Howard), and Director (Eric Karros).
A bullish sign: none of these purchases were pre-planned trades. Pre-planned trades are less important because they don’t demonstrate a discretionary decision to buy.
A bullish sign: these purchases were big relative to the size of the company. Large purchases show a higher degree of confidence in the company.
- Steel Partners’ market cap = $270 million
- The CEO bought $1.043 million of stock. He owns a total of $94 million of stock.
- The President bought $725k of stock.
- The Director bought $198k of stock
Institutional buying is trending up and institutional selling is trending down:
Air T (AIRT)
Air T provides air freight service. It saw significant insider buying last week from its CEO (Nick Swenson) and 2 directors (Gary Kohler & Raymond Cabillot).
A bullish sign: none of these purchases were pre-planned trades.
A bullish sign: these purchases were big relative to the size of the company.
- Air T’s market cap = $71 million
- The CEO bought $667k of stock
- Director Gary Kohler bought $726k of stock
- Director Raymond Cabillot bought $746k of stock
Something interesting: Insiders bought Air T after the stock soared. Meanwhile, institutional selling is up a little.
OPKO Health (OPK)
OPKO Health is a pharmaceuticals company. It saw significant insider buying last week from its CEO (Phillip Frost).
A bullish sign: this purchase was not pre-planned.
- OPKO Health’s market cap = $2.65 billion
- The CEO bought $1.199 million of stock.
The # of institutional buyers and sellers both increased a little in the past few months:
Beyond Air (XAIR)
Beyond Air is a biopharmaceutical company. It saw significant insider buying last week from its CEO (Steven Lisi) and CFO (Douglas Beck).
A bullish sign: none of these purchases were pre-planned trades.
- Beyond Air’s market cap = $91 million
- The CEO bought $203k of stock
- The CFO bought $15k of stock
A bearish sign: in a contradictory and somewhat worrisome sign, institutional selling suddenly jumped in the past 2 months:
