May 16, 2016

Posted by in Stock Reports | 0 Comments

3 Stocks With Insider Buying: RSP Permian Inc (NYSE:RSPP), ServiceNow Inc (NYSE:NOW),GrubHub Inc (NYSE:GRUB)

3 Stocks With Insider Buying: RSP Permian Inc (NYSE:RSPP), ServiceNow Inc (NYSE:NOW),GrubHub Inc (NYSE:GRUB)

As a general rule, insider buying shows management’s confidence in the company, and is considered a bullish sign—in other words a sign that stock prices are likely to go up. Conversely, insider selling is considered bearish—those in the know may be off loading their stocks in an expectation that prices will soon fall. So it pays to keep an eye on the activities of insiders.

Studies have shown that prompt and timely dissemination of insider transactions are profitable for investors, as insiders tend to beat the market. The odds in favor of an insider purchase being followed by further purchases are three times greater than the odds of a purchase followed by a sale.

RSP Permian Inc (NYSE:RSPP) saw an insider sell on May 13, 2016 that may make shareholders worried. Pollard Tamara D., EVP of Planning and Reserves, sold 35,000 shares at $32.68 a piece. The total sale came to $1,143,800, leaving the total count to 380,989 shares. Its shares currently owned by company management are 9.80% while institutional investors own about 89.20%. The 6-month change recorded in total insider ownership was -16.19%. On the other side, 0.13% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved McGee Daniel, a Chief Operating Officer at ServiceNow Inc (NYSE:NOW) sold 3,002 shares at $70.00 per share to trim the total holding at 33,726 shares. Its shares currently owned by company management are 0.30% while institutional investors own about 91.90%. The 6-month change recorded in total insider ownership was -76.00%. On the other side, 11.14% change in total institutional ownership has been reported for the 3-month period.

GrubHub Inc (NYSE:GRUB) also received some insider trading action as DeWitt Adam, who the company’s CFO and Treasurer is sold some 5,000 shares at a price of $25.06 per share to the holding that now comprises of 500 shares. Its shares currently owned by company management are 15.52% while institutional investors own about 91.20%. The 6-month change recorded in total insider ownership was -0.83%. On the other side, 7.81% change in total institutional ownership has been reported for the 3-month period.

 

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