Jun 15, 2016

Posted by in Stock Reports | 0 Comments

Insider Selling at Three Companies: Akorn (NASDAQ:AKRX), FNF Group of Fidelity National Financial (NYSE:FNF), Cognizant Technology Solutions (NASDAQ:CTSH)

Insider Selling at Three Companies: Akorn (NASDAQ:AKRX), FNF Group of Fidelity National Financial (NYSE:FNF), Cognizant Technology Solutions (NASDAQ:CTSH)

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.

Akorn, Inc. (NASDAQ:AKRX) saw an insider sell on June 14, 2016 that may make shareholders worried. BONACCORSI JOSEPH, Sr VP Gen Counsel & Secretary, sold 6,500 shares at $29.84 a piece. The total sale came to $193,960. Its shares currently owned by company management are 13.60% while institutional investors own about 99.50%. The 6-month change recorded in total insider ownership was -1.91%. On the other side, 3.76% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Gravelle Michael L, a E Executive Vice President at FNF Group of Fidelity National Financial, Inc. (NYSE:FNF) sold 34,542 shares at $35.17 per share to trim the total holding at 224,475 shares. Its shares currently owned by company management are 0.90% while institutional investors own about 85.70%. The 6-month change recorded in total insider ownership was -18.12%. On the other side, -0.31% 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 McLoughlin Karen, who the company’s Chief Financial Officer is sold some 590 shares at a price of $60.26 per share to the holding that now comprises of 48,759 shares. Its shares currently owned by company management are 0.30% while institutional investors own about 92.30%. The 6-month change recorded in total insider ownership was -10.89%. On the other side, -0.20% change in total institutional ownership has been reported for the 3-month period.

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