Apr 22, 2016

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Insider Buys Are Telling Something: Novartis AG (ADR) (NYSE:NVS), Eli Lilly and Co (NYSE:LLY), Monsanto Company (NYSE:MON)

Insider Buys Are Telling Something: Novartis AG (ADR) (NYSE:NVS), Eli Lilly and Co (NYSE:LLY), Monsanto Company (NYSE:MON)

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.

Moving on to the first insider trade Apr 12, 2016 which involved Novartis Bioventures Ltd, a 10% Owner at Novartis AG (ADR) (NYSE:NVS), who acquired 300,000 shares at $10.00 per share to put the total holding at 2,310,924 shares. Its shares currently owned by company management are 9.30% while institutional investors own about 9.80%. The 6-month change recorded in total insider ownership was 0.27%. On the other side, -0.01% change in total institutional ownership has been reported for the 3-month period.

Eli Lilly and Co (NYSE:LLY) saw an insider buy stock in the company on Apr 12. LILLY ELI & CO, 10% Owne of the company, bought 500,000 shares for $10.00 per share worth a total of $5,000,000. After this insider buying, LILLY ELI & CO now has a total stake of 2,568,543 shares in the company. Its shares currently owned by company management are 11.80% while institutional investors own about 77.60%. The 6-month change recorded in total insider ownership was -0.98%. On the other side, 0.17% change in total institutional ownership has been reported for the 3-month period.

Monsanto Company (NYSE:MON) also received some insider trading action as POSTE GEORGE, who is the company’s Director added some 1,136 shares at a price of $91.93 per share to the holding that now comprises of 34,619 shares. Its shares currently owned by company management are 0.30% while institutional investors own about 85.10%. The 6-month change recorded in total insider ownership was -2.56%. On the other side, -0.11% change in total institutional ownership has been reported for the 3-month period.

 

 

 

 

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