Apr 20, 2016

Posted by in Stock Reports | 0 Comments

3 stocks where insider buying activity has occurred: Consolidated Edison, Inc. (NYSE:ED), Eli Lilly and Co (NYSE:LLY), Terex Corporation (NYSE:TEX)

3 stocks where insider buying activity has occurred: Consolidated Edison, Inc. (NYSE:ED), Eli Lilly and Co (NYSE:LLY), Terex Corporation (NYSE:TEX)

“Insider trading” is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise” (Peter Lynch, one of the greatest investors of all time).

Insiders know their industry, in particular the company they are managing.

Insider trading can be profitable only if securities prices move. Therefore, insiders hoping to trade on inside information may try to get the price to move by cutting the company’s costs, seeking new products, and so on. While such actions benefit the insider, they also benefit the firm’s security holders as a group.

No one invests to lose money, so do corporate insiders. They are prevented from buying and selling their company stock within a six-month period: therefore, insiders buy stock when they feel the company will perform well over the long-term.

Moving on to the first insider trade Apr 15 2016 which involved McAvoy John, a Chairman, President & CEO at Consolidated Edison, Inc. (NYSE:ED), who acquired 28 shares at $75.79 per share to put the total holding at 13,992 shares. Its shares currently owned by company management are 0.10% while institutional investors own about 53.80%. The 6-month change recorded in total insider ownership was 0.74%. On the other side, -0.23% change in total institutional ownership has been reported for the 3-month period.

Eli Lilly and Co (NYSE:LLY) saw an insider buy stock in the company on Apr 12. LILLY ELI & CO, 10% Owner of the company, bought 500,000 shares for $10.00 per share worth a total of $5,000,000. After this insider buying, LILLY ELI & CO now has a total stake of 2,568,543 shares in the company. Its shares currently owned by company management are 11.80% while institutional investors own about 77.60%. The 6-month change recorded in total insider ownership was -0.98%. On the other side, 0.17% change in total institutional ownership has been reported for the 3-month period.

Terex Corporation (NYSE:TEX) also received some insider trading action as BARR KEVIN A, who is the company’s Senior V. P. Human Resources added some 10 shares at a price of $23.23 per share to the holding that now comprises of 163,608 shares. Its shares currently owned by company management are 3.30% while institutional investors own about 84.40%. The 6-month change recorded in total insider ownership was -2.64%. On the other side, 0.27% change in total institutional ownership has been reported for the 3-month period.

 

 

 

 

 

 

 

Comments are closed.