Jun 27, 2016

Posted by in Stock Reports | 0 Comments

Significant Insider Buying Activity: Barracuda Networks Inc (NYSE:CUDA), General Cable Corporation (NYSE:BGC), Minerva Neurosciences Inc (NASDAQ:NERV)

Significant Insider Buying Activity: Barracuda Networks Inc (NYSE:CUDA), General Cable Corporation (NYSE:BGC), Minerva Neurosciences Inc (NASDAQ:NERV)

“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 June 02, 2016 which involved Drako Dean M, a 10% Owner at Barracuda Networks Inc (NYSE:CUDA), who acquired 25,739 shares at $17.31 per share to put the total holding at 2,148,297 shares. Its shares currently owned by company management are 17.10% while institutional investors own about 61.10%. The 6-month change recorded in total insider ownership was -5.68%. On the other side, 5.03% change in total institutional ownership has been reported for the 3-month period.

General Cable Corporation (NYSE:BGC) saw an insider buy stock in the company on June 17. LAWTON GREGORY E, Director of the company, bought 900 shares for $14.00 per share worth a total of $12,600. After this insider buying, LAWTON GREGORY E now has a total stake of 41,580 shares in the company. Its shares currently owned by company management are 2.50% while institutional investors own about 96.40%. The 6-month change recorded in total insider ownership was 1.74%. On the other side, -0.20% change in total institutional ownership has been reported for the 3-month period.

Minerva Neurosciences Inc (NASDAQ:NERV) also received some insider trading action as Kupfer David, who is the company’s Director added some 27,935 shares at a price of $10.73 per share to the holding that now comprises of 27,935 shares. Its shares currently owned by company management are 0.60% while institutional investors own about 59.00%. The 6-month change recorded in total insider ownership was 59.00%. On the other side, 21.78% change in total institutional ownership has been reported for the 3-month period.

 

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