Jun 29, 2016

Posted by in Stock Reports | 0 Comments

Insider Selling Spotlight: Noble Energy, Inc. (NYSE:NBL), Applied Materials, Inc. (NASDAQ:AMAT), Federated Investors Inc (NYSE:FII)

Insider Selling Spotlight: Noble Energy, Inc. (NYSE:NBL), Applied Materials, Inc. (NASDAQ:AMAT), Federated Investors Inc (NYSE:FII)

As an investor it is wise to keep track of what insiders at large and small companies are doing. After all, these insiders are executives who should understand their business better than any of the rest of us. Using the trades that these executives make as one of the major tools of your stock investment research is wise.

Quite simply there are all kinds of reasons that an insider would sell a stock, and there is no way of telling exactly why they are selling at the time. Consider the fact that the insider could be selling to fund the education of a child or buy a new home. On the other hand insider purchases are generally more reliable indicators because the main goal in buying a stock is to make money, whether you are an insider or not.

Knowing the role of the insider who made the transaction is important. This seems like it should be common sense, but some investors fail to pay attention to this very important detail. Heavy insider transactions by someone such as the CFO or CEO should carry much more weight than insider transactions by someone who is an outside director. Consider how much that insider should know about the current state of the industry and their businesses.

Noble Energy, Inc. (NYSE:NBL) saw an insider sell on June 24, 2016 that may make shareholders worried. EDELMAN THOMAS J, Exec. Director, sold 12,000 shares at $35.09 a piece. The total sale came to $421,080, leaving the total count to 812,000 shares. Its shares currently owned by company management are 1.20% while institutional investors own about 96.90%. The 6-month change recorded in total insider ownership was -2.04%. On the other side, -0.29% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Salehpour Ali, a Sr. VP, GM New Mrkts & Service at Applied Materials, Inc. (NASDAQ:AMAT) sold 17,753 shares at $23.63 per share to trim the total holding at 477,938 shares. Its shares currently owned by company management are 0.20%. The 6-month change recorded in total insider ownership was -4.60%. On the other side, -3.41% change in total institutional ownership has been reported for the 3-month period.

Federated Investors Inc (NYSE:FII) also received some insider trading action as Uhlman Paul A, who the company’s Vice President is sold some 1,083 shares at a price of $27.29 per share to the holding that now comprises of 120,676 shares. Its shares currently owned by company management are 3.70% while institutional investors own about 78.30%. The 6-month change recorded in total insider ownership was -2.33%. On the other side, 2.24% change in total institutional ownership has been reported for the 3-month period.

Comments are closed.