Jun 6, 2016

Posted by in Stock Reports | 0 Comments

Significant Insider Buying Activity: Sears Holdings Corp (NASDAQ:SHLD), Bristow Group Inc (NYSE:BRS), Legg Mason Inc (NYSE:LM)

Significant Insider Buying Activity: Sears Holdings Corp (NASDAQ:SHLD), Bristow Group Inc (NYSE:BRS), Legg Mason Inc (NYSE:LM)

“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 07, 2016 which involved FAIRHOLME CAPITAL MANAGEMENT L, a director at Sears Holdings Corp (NASDAQ:SHLD), who acquired 144,100 shares at $13.50 per share to put the total holding at 27,500,548 shares. Its shares currently owned by company management are 0.10% while institutional investors own about 67.20%. On the other side, -1.80% change in total institutional ownership has been reported for the 3-month period.

Bristow Group Inc (NYSE:BRS) saw an insider buy stock in the company on June 07. Baliff Jonathan, President and CEO of the company, bought 1,600 shares for $16.12 per share worth a total of $25,794. After this insider buying, Montz Renee Denise now has a total stake of 37,366 shares in the company. Its shares currently owned by company management are 0.50% while institutional investors own about 96.30%. The 6-month change recorded in total insider ownership was 33.77%. On the other side, 2.91% change in total institutional ownership has been reported for the 3-month period.

Legg Mason Inc (NYSE:LM) also received some insider trading action as DAVIDSON CAROL ANTHONY, who is the company’s Director added some 3,000 shares at a price of $33.92 per share to the holding that now comprises of 3,000 shares. Its shares currently owned by company management are 0.80% while institutional investors own about 92.10%. The 6-month change recorded in total insider ownership was -96.15%. On the other side, -0.37% change in total institutional ownership has been reported for the 3-month period.

 

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