Feb 25, 2016

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3 Stocks With Insider Selling: Hormel Foods Corp (NYSE:HRL), American Airlines Group Inc (NASDAQ:AAL), Cognizant Technology Solutions Corp (NASDAQ:CTSH)

3 Stocks With Insider Selling: Hormel Foods Corp (NYSE:HRL), American Airlines Group Inc (NASDAQ:AAL), Cognizant Technology Solutions Corp (NASDAQ:CTSH)

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.

Hormel Foods Corp (NYSE:HRL) saw an insider sell on Feb 24, 2016 that may make shareholders worried. SHEEHAN JAMES N, V.P. & Controller, sold 26,489 shares at $43.44 a piece. The total sale came to $1,150,682, leaving the total count to 56,786 shares. Its shares currently owned by company management are 49.10% while institutional investors own about 34.70%. The 6-month change recorded in total insider ownership was -0.08%. On the other side, 0.18% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Leibman Maya, a EVP Chief Information Officer at American Airlines Group Inc (NASDAQ:AAL) sold 100,000 shares at $40.73 per share to trim the total holding at 168,556 shares. Its shares currently owned by company management are 0.70% while institutional investors own about 72.20%. The 6-month change recorded in total insider ownership was -10.22%. On the other side, -3.04% change in total institutional ownership has been reported for the 3-month period.

Cognizant Technology Solutions Corp (NASDAQ:CTSH) also received some insider trading action as fox John nelson JR, who the company’s Director is sold some 10,000 shares at a price of $56.69 per share to the holding that now comprises of 10,743 shares. Its shares currently owned by company management are 0.20% while institutional investors own about 92.20%. The 6-month change recorded in total insider ownership was -6.12%. On the other side, -0.26% change in total institutional ownership has been reported for the 3-month period.

 

 

 

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