Jun 22, 2016

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Significant Insider Buying Activity: Catalyst Pharmaceuticals Inc (NASDAQ:CPRX), Sanofi SA (ADR) (NYSE:SNY), Old Republic International Corporation (NYSE:ORI)

Significant Insider Buying Activity: Catalyst Pharmaceuticals Inc (NASDAQ:CPRX), Sanofi SA (ADR) (NYSE:SNY), Old Republic International Corporation (NYSE:ORI)

“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 17, 2016 which involved COELHO PHILIP H, a director at Catalyst Pharmaceuticals Inc (NASDAQ:CPRX), who acquired 15,000 shares at $0.76 per share to put the total holding at 173,287 shares. Its shares currently owned by company management are 6.70% while institutional investors own about 44.80%. The 6-month change recorded in total insider ownership was 3.85%. On the other side, -12.15% change in total institutional ownership has been reported for the 3-month period.

Sanofi SA (ADR) (NYSE:SNY) saw an insider buy stock in the company on June 14. Montz Sanofi, 10% Owner of the company, bought 64,731 shares for $363.86 per share worth a total of $23,552,859. After this insider buying, Sanofi now has a total stake of 23,418,396 shares in the company. Its shares currently owned by company management are 16.40% while institutional investors own about 9.70%. On the other side, 0.19% change in total institutional ownership has been reported for the 3-month period.

Old Republic International Corporation (NYSE:ORI) also received some insider trading action as WALKER STEVEN R, who is the company’s Director added some 4,000 shares at a price of $18.42 per share to the holding that now comprises of 8,000 shares. Its shares currently owned by company management are 0.20% while institutional investors own about 73.60%. The 6-month change recorded in total insider ownership was -1.49%. On the other side, 1.17% change in total institutional ownership has been reported for the 3-month period.

 

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