Jun 17, 2016

Posted by in Stock Reports | 0 Comments

Significant Insider Buying Activity: Cheniere Energy, Inc. (NYSEMKT:LNG), Kennametal Inc. (NYSE:KMT), Bruker Corporation (NASDAQ:BRKR)

Significant Insider Buying Activity: Cheniere Energy, Inc. (NYSEMKT:LNG), Kennametal Inc. (NYSE:KMT), Bruker Corporation (NASDAQ:BRKR)

“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 15, 2016 which involved Fusco Jack A, a CEO and President at Cheniere Energy, Inc. (NYSEMKT:LNG), who acquired 14,115 shares at $32.97 per share to put the total holding at 465,314 shares. Its shares currently owned by company management are 3.20% while institutional investors own about 95.30%. The 6-month change recorded in total insider ownership was -0.13%. On the other side, -0.38% change in total institutional ownership has been reported for the 3-month period.

Kennametal Inc. (NYSE:KMT) saw an insider buy stock in the company on June 10. Harvey William J., Director of the company, bought 517 shares for $24.10 per share worth a total of $12,460. After this insider buying, Harvey William J. now has a total stake of 6,563 shares in the company. Its shares currently owned by company management are 0.20% while institutional investors own about 95.90%. The 6-month change recorded in total insider ownership was 18.09%. On the other side, -4.76% change in total institutional ownership has been reported for the 3-month period.

Bruker Corporation (NASDAQ:BRKR) also received some insider trading action as LAUKIEN FRANK H, who is the company’s CEO, President added some 4,174 shares at a price of $23.95 per share to the holding that now comprises of 37,654,233 shares. Its shares currently owned by company management are 32.80% while institutional investors own about 67.60%. The 6-month change recorded in total insider ownership was -3.72%. On the other side, -2.42% change in total institutional ownership has been reported for the 3-month period.

 

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