Jul 1, 2016

Posted by in Stock Reports | 0 Comments

Insider Sells Are Telling Something: Care.com Inc (NYSE:CRCM), Kellogg Company (NYSE:K), TreeHouse Foods Inc. (NYSE:THS)

Insider Sells Are Telling Something: Care.com Inc (NYSE:CRCM), Kellogg Company (NYSE:K), TreeHouse Foods Inc. (NYSE:THS)

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.

Care.com Inc (NYSE:CRCM) saw an insider sell on June 29, 2016 that may make shareholders worried. MATRIX PARTNERS VII LP ET AL, 10% Owner, sold 3,684,645 shares at $8.25 a piece. The total sale came to $30,398,321, leaving the total count to 1,231,560 shares. Its shares currently owned by company management are 3.50% while institutional investors own about 59.00%. The 6-month change recorded in total insider ownership was -78.83%. On the other side, 3.92% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved KELLOGG W K FOUNDATION TRUST, a 10% Owner at Kellogg Company (NYSE:K) sold 250,000 shares at $76.98 per share to trim the total holding at 68,803,690 shares. Its shares currently owned by company management are 19.90% while institutional investors own about 82.70%. The 6-month change recorded in total insider ownership was -1.04%. On the other side, -1.65% change in total institutional ownership has been reported for the 3-month period.

TreeHouse Foods Inc. (NYSE:THS) also received some insider trading action as MAGNER MARJORIE, who the company’s Director is sold some 3,000 shares at a price of $112.49 per share to the holding that now comprises of 25,952 shares. Its shares currently owned by company management are 0.30%. The 6-month change recorded in total insider ownership was -17.98%. On the other side, 33.35% change in total institutional ownership has been reported for the 3-month period.

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