May 25, 2016

Posted by in Stock Reports | 0 Comments

Companies with noteworthy insider trading activity: Principal Financial (NYSE:PFG), Bristol-Myers Squibb (NYSE:BMY), NRG Energy (NYSE:NRG)

Companies with noteworthy insider trading activity: Principal Financial (NYSE:PFG), Bristol-Myers Squibb (NYSE:BMY), NRG Energy (NYSE:NRG)

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.

Principal Financial Group Inc (NYSE:PFG) saw an insider sell on May 23, 2016 that may make shareholders worried. MCCAUGHAN JAMES P, President – Global Asset Mgmt, sold 10,000 shares at $43.13 a piece. The total sale came to $431,300, leaving the total count to 195,598 shares. Its shares currently owned by company management are 0.50% while institutional investors own about 68.70%. The 6-month change recorded in total insider ownership was -7.60%. On the other side, -1.10% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Bancroft Charles A, a EVP & Chief Financial Officer at Bristol-Myers Squibb Co (NYSE:BMY) sold 30,201 shares at $70.79 per share to trim the total holding at 184,694 shares. Its shares currently owned by company management are 0.10% while institutional investors own about 74.40%. The 6-month change recorded in total insider ownership was -20.58%. On the other side, -0.03% change in total institutional ownership has been reported for the 3-month period.

NRG Energy Inc (NYSE:NRG) also received some insider trading action as Callen David, who the company’s SVP, Chief Accounting Offficer is sold some 1,968 shares at a price of $15.51 per share to the holding that now comprises of 30,042 shares. Its shares currently owned by company management are 0.40%. The 6-month change recorded in total insider ownership was 2.69%. On the other side, -2.96% change in total institutional ownership has been reported for the 3-month period.

 

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