May 30, 2016

Posted by in Stock Reports | 0 Comments

3 Stocks With Insider Buying: Omega Healthcare Investors Inc (NYSE:OHI), Penn National Gaming, Inc (NASDAQ:PENN), Advance Auto Parts, Inc. (NYSE:AAP)

3 Stocks With Insider Buying: Omega Healthcare Investors Inc (NYSE:OHI), Penn National Gaming, Inc (NASDAQ:PENN), Advance Auto Parts, Inc. (NYSE:AAP)

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 May 23, 2016 which involved FRANKE THOMAS F, a director at Omega Healthcare Investors Inc (NYSE:OHI), who acquired 4,000 shares at $31.01 per share to put the total holding at 1,000 shares. Its shares currently owned by company management are 1.20% while institutional investors own about 87.60%. The 6-month change recorded in total insider ownership was 1.00%. On the other side, 4.38% change in total institutional ownership has been reported for the 3-month period.

Penn National Gaming, Inc (NASDAQ:PENN) saw an insider buy stock in the company on May 24. NAPLES RONALD J, director of the company, bought 1,000 shares for $14.68 per share worth a total of $14,680. After this insider buying, NAPLES RONALD J now has a total stake of 1,000  shares in the company. Its shares currently owned by company management are 1.50%. The 6-month change recorded in total insider ownership was 0.42%. On the other side, -1.82% change in total institutional ownership has been reported for the 3-month period.

Advance Auto Parts, Inc. (NYSE:AAP) also received some insider trading action as Smith Jeffrey C, who is the company’s director added some 150,000 shares at a price of $152.73 per share to the holding that now comprises of 533,785  shares. Its shares currently owned by company management are 0.60% while institutional investors own about 99.30%. The 6-month change recorded in total insider ownership was 46.78%. On the other side, 0.57% change in total institutional ownership has been reported for the 3-month period.

 

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