Jun 1, 2016

Posted by in Stock Market News | 0 Comments

Insider Buys Are Telling Something: Office Depot Inc (NASDAQ:ODP), RPX Corp (NASDAQ:RPXC), American Electric Power Company Inc (NYSE:AEP)

Insider Buys Are Telling Something: Office Depot Inc (NASDAQ:ODP), RPX Corp (NASDAQ:RPXC), American Electric Power Company Inc (NYSE:AEP)

Insider Trading is the buying or selling of a security by someone who has access to material, nonpublic information about the security. Insider trading is legal once the material information has been made public, at which time the insider has no direct advantage over other investors. The SEC, however, still requires all insiders to report all their transactions. So, as insiders have an insight into the workings of their company, it may be wise for an investor to look at these reports to see how insiders are legally trading their stock.

It isn’t a coincidence that corporate executives seem to always buy and sell at the right times. After all, the CEOs and CFOs of the world have access to every bit of company information you could ever want. This kind of information is extremely valuable to individual investors. For example, if insiders are buying shares in their own companies, they usually know something that normal investors do not. They might buy because they see great potential, a merger, acquisition or simply because they think their stock is undervalued.

Moving on to the first insider trade May 25, 2016 which involved TRAVIS NIGEL, a Director at Office Depot Inc (NASDAQ:ODP), who acquired 14,267 shares at $3.47 per share to put the total holding at 192,003 shares. Its shares currently owned by company management are 0.50% while institutional investors own about 91.40%. The 6-month change recorded in total insider ownership was 0.53%. On the other side, 1.15% change in total institutional ownership has been reported for the 3-month period.

RPX Corp (NASDAQ:RPXC) saw an insider buy stock in the company on May 31. Yen Mallun, Executive Vice President of the company, bought 7,407 shares for $9.95 per share worth a total of $100,266. After this insider buying, Yen Mallun now has a total stake of 100,266 shares in the company. Its shares currently owned by company management are 0.60% while institutional investors own about 91.40%. On the other side, -37.65% change in total institutional ownership has been reported for the 3-month period.

American Electric Power Company Inc (NYSE:AEP) also received some insider trading action as McCullough Mark C, who is the company’s Executive Vice President added some 4,425 shares at a price of $64.33 per share to the holding that now comprises of 6,878 shares. Its shares currently owned by company management are 0.01% while institutional investors own about 69.20%. The 6-month change recorded in total insider ownership was -8.95%. On the other side, 0.45% change in total institutional ownership has been reported for the 3-month period.

 

 

 

 

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