Insider Purchasing is Going Crazy due to Coronavirus

by Connorvo

Due to the coronavirus, a ton of executives are participating in unusual compensation/purchasing activity. So I have begun scraping the SEC website to see which executives are purchasing, selling, or being awarded stock for no known reason except that the stock price is extra low and they may just be buying their stock at a discount (or selling it before it crashes further). Obviously, we don’t know how long the coronavirus may keep the market down, but this can help us see which executives believe their stock will rebound nicely and which believe it will continue to decline.

*I can’t post links or images in this subreddit, but hopefully they at least allow the Form 4 links so you can go look at the activity for yourselves*

1) RBB Bancorp – $RBB ($14.00) – Purchasing Activity

SEC FORM 4 FILING LINK -> www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=1499422&type=&dateb=&owner=include&start=0

From Yahoo Finance:

RBB Bancorp operates as the bank holding company for Royal Business Bank that provides various banking products and services to the Chinese-American communities.

Taking a look at the Form 4 activity below, we can see a ton of purchasing activity over the last 10 days with some of the purchases being quite large.

Date Executive Name Title Type Avg Price Total Purchased # of Shares Total Shares Share Increase
2020-03-13 Vincent Liu EVP P-Purchase $15.60 $56160.00 3.6K 71.2K 5%
2020-03-12 Yee Phong Thian CEO P-Purchase $14.50 $116000.00 8.0K 443.1K 2%
2020-03-11 Chuang I Lin Director P-Purchase $13.87 $41610.00 3.0K 24.5K 14%
2020-03-11 Jeffrey Yeh EVP P-Purchase $13.40 $6700.00 0.5K 52.9K 1%
2020-03-11 Raymond H Yu Director P-Purchase $13.48 $26960.00 2.0K 255.6K 1%
2020-03-10 James Kao Director P-Purchase $15.50 $759500.00 49.0K 401.9K 14%
2020-03-10 David Richard Morris EVP P-Purchase $14.00 $7000.00 0.5K 13.3K 4%
2020-03-06 Simon Pang EVP P-Purchase $15.85 $15850.00 1.0K 25.8K 4%
2020-03-06 Tsu Te Huang EVP P-Purchase $15.87 $47610.00 3.0K 218.3K 1%
2020-03-06 Wendell Chen Director P-Purchase $16.07 $16070.00 1.0K 79.2K 1%
2020-03-06 Peter M Chang Director P-Purchase $15.98 $159800.00 10.0K 535.7K 2%

Taking a look at the individual Form 4s, we can see that they don’t mention that the purchases are for any form of pre-arranged agreement. It looks like the directors and executives are just looking to get some stock on the cheap.

2) Goodrich Petroleum Corp – $GDP ($3.73) – Purchasing Activity

SEC FORM 4 FILING LINK -> www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=943861&type=&dateb=&owner=include&start=0

From Yahoo Finance:

Goodrich Petroleum Corporation, an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas. It primarily holds interests in the Haynesville Shale Trend in northwest Louisiana and East Texas; Tuscaloosa Marine Shale Trend located in southwest Mississippi and southeast Louisiana; and the Eagle Ford Shale Trend situated in South Texas

Taking a look at the Form 4 activity, we can see a few purchases made by the executives about 5 or 6 days ago. While only 3 executives made purchases and the amounts purchased aren’t massive, they were made by their 3 highest-ranking executives who almost never make open market purchases.

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Date Executive Name Title Type Avg Price Total Purchased # of Shares Total Shares Share Increase
2020-03-13 Walter Goodrich CEO P-Purchase $3.45 $52613 15.3K 518.5K 3%
2020-03-12 Robert Turnham COO P-Purchase $4.23 $14805 3.5K 506.8K 1%
2020-03-11 Rober Barker CFO P-Purchase $3.64 $1820 0.5K 34.8K 1%

Taking a look at the Form 4s gives us no reason for the purchases. It looks like these executives may be looking to pick up some cheap stock.

3) Welbilt, Inc – $WBT ($6.82) – Purchasing Activity

SEC FORM 4 FILING LINK -> www.sec.gov/cgi-bin/own-disp?action=getowner&CIK=0001310250

From Yahoo Finance:

Welbilt, Inc., designs, manufactures, and supplies foodservice equipment for commercial foodservice market worldwide.

Taking a look at the Form 4s, we can see a few executives made some large purchases a few days ago. While only 3 executives made purchases, they are very substantial purchases and were made by executives that very rarely/never make open market purchases like this.

Date Executive Name Title Type Avg Price Total Purchased # of Shares Total Shares Share Increase
2020-03-11 Jennifer Gudenkauf EVP P-Purchase $8.57 $45010 5.3K 11.1K 89%
2020-03-10 William Johnson CEO P-Purchase $9.89 $99800 10.1K 125.5K 9%
2020-03-10 Martin Agard CFO P-Purchase $9.86 $197200 20.0K 50.2K 66%

Once again, we see that the Form 4 makes no mention of any reason for these stock purchases.

4) Prosperity Bancshares Inc – $PB ($56.61) – Purchasing Activity

SEC FORM 4 FILING LINK -> www.sec.gov/cgi-bin/own-disp?action=getissuer&CIK=1068851&type=&dateb=&owner=include&start=0

From Yahoo Finance:

Prosperity Bancshares, Inc. operates as bank holding company for the Prosperity Bank that provides retail and commercial banking services to small and medium-sized businesses, and consumers.

Taking a look at the Form 4s, we can see a bunch of purchases made a few days ago. Taking a deeper look at some of the purchases made, we can see some pretty massive purchases being made by some very high-level directors and executives.

Date Executive Name Title Type Avg Price Total Purchased # of Shares Total Shares Share Increase
2020-03-11 H E Timanus Chairman P-Purchase $51.00 $2550000 50.0K 171.9K 41%
2020-03-10 James Bouligny Director P-Purchase $50.00 $200000 4.0K 332.2K 1%
2020-03-10 Charlotte Rasche EVP P-Purchase $51.31 $102620 2.0K 33.2K 6%
2020-03-10 Asylbek Osmonov CFO P-Purchase $51.24 $15372 0.3K 6.5K 5%
2020-03-09 Edward Safady Vice Chairman P-Purchase $50.00 $250000 5.0K 30.6K 20%
2020-03-09 Kevin Hanigan COO P-Purchase $51.00 $255000 5.0K 165.8K 3%

Digging into the Form 4s, we do see that some of these purchases are part of the executives’ 401K plans. However, these are still large purchases by the executives.

 

 

Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.