Apr 19, 2016

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3 Stocks With Insider Buying: Hovnanian Enterprises, Inc. (NYSE:HOV), Ascena Retail Group Inc (NASDAQ:ASNA), American Equity Investment Life Holding (NYSE:AEL)

3 Stocks With Insider Buying: Hovnanian Enterprises, Inc. (NYSE:HOV), Ascena Retail Group Inc (NASDAQ:ASNA), American Equity Investment Life Holding (NYSE:AEL)

Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information as the investor with insider information could potentially make far larger profits that a typical investor could not make.

The authors of one study claim that illegal insider trading raises the cost of capital for securities issuers, thus decreasing overall economic growth. However, some economists have argued that insider trading should be allowed and could, in fact, benefit markets.

Trading by specific insiders, such as employees, is commonly permitted as long as it does not rely on material information not in the public domain. However, most jurisdictions require such trading be reported so that these can be monitored. In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade.

Moving on to the first insider trade Apr 14, 2016 which involved PAGANO VINCENT JR, a director at Hovnanian Enterprises, Inc. (NYSE:HOV), who acquired 14,535 shares at $1.74 per share to put the total holding at 111,688 shares. Its shares currently owned by company management are 6.70% while institutional investors own about 36.70%. The 6-month change recorded in total insider ownership was 0.35%. On the other side, 0.02% change in total institutional ownership has been reported for the 3-month period.

Ascena Retail Group Inc (NASDAQ:ASNA) saw an insider buy stock in the company on Apr 06. BAYNE KATIE J, director of the company, bought 4,000 shares for $10.12 per share worth a total of $40,467. After this insider buying, BAYNE KATIE J now has a total stake of 6,696 shares in the company. Its shares currently owned by company management are 6.80% while institutional investors own about 74.70%. The 6-month change recorded in total insider ownership was 1.02%. On the other side, 1.50% change in total institutional ownership has been reported for the 3-month period.

American Equity Investment Life Holding (NYSE:AEL) also received some insider trading action as Montz Renee Denise, who is the company’s Exec VP-Gen Counsel & Asst Sec added some 885 shares at a price of $13.45 per share to the holding that now comprises of 2,753 shares. Its shares currently owned by company management are 3.00% while institutional investors own about 90.10%. The 6-month change recorded in total insider ownership was -9.18%. On the other side, 0.13% change in total institutional ownership has been reported for the 3-month period.

 

 

 

 

 

 

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