May 30, 2016

Posted by in Stock Reports | 0 Comments

Latest Insider Purchases: Opko Health Inc. (NYSE:OPK), Edwards Lifesciences Corp (NYSE:EW), Tallgrass Energy Partners LP (NYSE:TEP)

Latest Insider Purchases: Opko Health Inc. (NYSE:OPK), Edwards Lifesciences Corp (NYSE:EW), Tallgrass Energy Partners LP (NYSE:TEP)

“Insider trading” is a term that most investors have heard and usually associate with illegal conduct. But the term actually includes both legal and illegal conduct. The legal version is when corporate insiders—officers, directors, and employees—buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise” (Peter Lynch, one of the greatest investors of all time).

Insiders know their industry, in particular the company they are managing.

Insider trading can be profitable only if securities prices move. Therefore, insiders hoping to trade on inside information may try to get the price to move by cutting the company’s costs, seeking new products, and so on. While such actions benefit the insider, they also benefit the firm’s security holders as a group.

No one invests to lose money, so do corporate insiders. They are prevented from buying and selling their company stock within a six-month period: therefore, insiders buy stock when they feel the company will perform well over the long-term.

Moving on to the first insider trade May 26, 2016 which involved FROST PHILLIP MD ET AL, a CEO & Chairman at Opko Health Inc. (NYSE:OPK), who acquired 12,000 shares at $10.45 per share to put the total holding at 159,646,343 shares. Its shares currently owned by company management are 6.20% while institutional investors own about 20.30%. The 6-month change recorded in total insider ownership was 4.35%. On the other side, -4.15% change in total institutional ownership has been reported for the 3-month period.

Edwards Lifesciences Corp (NYSE:EW) saw an insider buy stock in the company on May 24. LORANGER STEVEN R, director of the company, bought 5,000 shares for $101.07 per share worth a total of $505,344. After this insider buying, LORANGER STEVEN R now has a total stake of 5,000 shares in the company. Its shares currently owned by company management are 0.40% while institutional investors own about 87.70%. The 6-month change recorded in total insider ownership was -36.65%. On the other side, -1.23% change in total institutional ownership has been reported for the 3-month period.

Tallgrass Energy Partners LP (NYSE:TEP) also received some insider trading action as DEHAEMERS DAVID G JR, who is the company’s President and CEO added some 7,500 shares at a price of $43.45 per share to the holding that now comprises of 312,847 shares. Its shares currently owned by company management are 44.18% while institutional investors own about 43.40%. The 6-month change recorded in total insider ownership was 0.04%. On the other side, 6.22% change in total institutional ownership has been reported for the 3-month period.

 

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