Apr 25, 2016

Posted by in Stock Reports | 0 Comments

Significant Insider Selling Activity: Canadian Pacific Railway Limited (USA) (NYSE:CP), Hasbro, Inc. (NASDAQ:HAS), Red Hat Inc (NYSE:RHT)

Significant Insider Selling Activity: Canadian Pacific Railway Limited (USA) (NYSE:CP), Hasbro, Inc. (NASDAQ:HAS), Red Hat Inc (NYSE:RHT)

As a general rule, insider buying shows management’s confidence in the company, and is considered a bullish sign—in other words a sign that stock prices are likely to go up. Conversely, insider selling is considered bearish—those in the know may be off loading their stocks in an expectation that prices will soon fall. So it pays to keep an eye on the activities of insiders.

Studies have shown that prompt and timely dissemination of insider transactions are profitable for investors, as insiders tend to beat the market. The odds in favor of an insider purchase being followed by further purchases are three times greater than the odds of a purchase followed by a sale.

Canadian Pacific Railway Limited (USA) (NYSE:CP) saw an insider sell on Apr 22, 2016 that may make shareholders worried. Pershing Square Capital Manage, director, sold 4,100,000 shares at $148.25 a piece. The total sale came to $607,825,000, leaving the total count to 9,840,890 shares. Its shares currently owned by company management are 8.06% while institutional investors own about 67.90%. The 6-month change recorded in total insider ownership was -24.86%. On the other side, 2.41% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Tinga Wiebe, a EVP & Chief Commerical Officer at Hasbro, Inc. (NASDAQ:HAS) sold 28,844 shares at $86.08 per share to trim the total holding at 71,916 shares. Its shares currently owned by company management are 0.40% while institutional investors own about 85.50%. The 6-month change recorded in total insider ownership was -76.16%. On the other side, 0.15% change in total institutional ownership has been reported for the 3-month period.

Red Hat Inc (NYSE:RHT) also received some insider trading action as Alexander DeLisa, who the company’s EVP, Chief People Officer is sold some 6,984 shares at a price of $75.77 per share to the holding that now comprises of 52,931 shares. Its shares currently owned by company management are 0.50% while institutional investors own about 97.20%. The 6-month change recorded in total insider ownership was -4.30%. On the other side, 0.06% change in total institutional ownership has been reported for the 3-month period.

 

 

 

 

 

 

Comments are closed.