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U.S. Insider Trading Activity on 5/12/2021
 

An insider trade occurs when an individual that has non-public information about a company buys or sells shares of that company's stock. Examples of people who would be considered insiders include a company's executive officers, its board of directors, and its major shareholders. Tracking a company's insider trades is a metric that can be used to identify the direction that the company's executives believe that the company is headed. For example, if many insiders purchase more shares of a company, they may think that the company will have strong future earnings and that the share price will increase in the near future. What you need to know about insider trading.

CompanyInsider NameBuy/SellShares Bought/SoldTotal TransactionShares Held After TransactionTransaction DateActions
A. O. Smith Co. logo
AOS
A. O. Smith Co.
David R Warren (VP)Sell30,392$2,151,449.68 7,8085/11/2021  
Acacia Research Co. logo
ACTG
Acacia Research Co.
Marc W. Booth (Insider)Sell4,573$26,157.56 191,2775/10/2021  
Academy Sports and Outdoors, Inc. logo
ASO
Academy Sports and Outdoors, Inc.
Kkr Group Partnership L.P. (Major Shareholder)Sell13,100,000$405,576,000.005/10/2021  
ACI Worldwide, Inc. logo
ACIW
ACI Worldwide, Inc.
Jeremy Wilmot (Insider)Sell32,459$1,263,953.465/10/2021  
ACI Worldwide, Inc. logo
ACIW
ACI Worldwide, Inc.
Jeremy Wilmot (Insider)Sell22,879$884,730.935/12/2021  
Acme United Co. logo
ACU
Acme United Co.
Walter C Johnsen (CEO)Sell2,972$132,135.12 307,8705/10/2021  
Agile Therapeutics, Inc. logo
AGRX
Agile Therapeutics, Inc.
Dennis Reilly (CFO)Buy20,000$27,000.00 176,3065/11/2021  
Alamo Group Inc. logo
ALG
Alamo Group Inc.
Edward Rizzuti (VP)Sell475$75,031.00 5,1095/11/2021  
Alkermes plc logo
ALKS
Alkermes plc
Richard F Pops (CEO)Sell150,000$3,313,500.00 942,0405/11/2021  
Allena Pharmaceuticals, Inc. logo
ALNA
Allena Pharmaceuticals, Inc.
Louis Md Brenner (COO)Sell25,215$27,988.65 203,3225/10/2021  
Alphatec Holdings, Inc. logo
ATEC
Alphatec Holdings, Inc.
Jennifer N Pritzker (Major Shareholder)Buy4,000$57,520.00 36,2005/10/2021  
Alphatec Holdings, Inc. logo
ATEC
Alphatec Holdings, Inc.
David R Pelizzon (Director)Buy120,000$1,830,000.00 268,8375/10/2021  
American Assets Trust, Inc. logo
AAT
American Assets Trust, Inc.
Ernest S Rady (CEO)Buy20,000$707,400.005/10/2021  
American Assets Trust, Inc. logo
AAT
American Assets Trust, Inc.
Ernest S Rady (CEO)Buy20,000$674,800.005/12/2021  
American Financial Group, Inc. logo
AFG
American Financial Group, Inc.
Carl H. Lindner III (CEO)Sell86,760$11,207,656.80 50,0005/10/2021  
American Homes 4 Rent logo
AMH
American Homes 4 Rent
B Wayne Et Al Hughes (Major Shareholder)Buy54,000$1,994,220.005/12/2021  
American International Group, Inc. logo
AIG
American International Group, Inc.
Kevin T Hogan (EVP)Sell41,000$2,143,480.00 165,5075/10/2021  
American Tower Co. (REIT) logo
AMT
American Tower Co. (REIT)
Amit Sharma (CEO)Sell40,276$10,007,780.48 259,6225/10/2021  
American Tower Co. (REIT) logo
AMT
American Tower Co. (REIT)
Rodney M Smith (CFO)Sell18,657$4,647,645.27 69,6405/10/2021  
Americold Realty Trust logo
COLD
Americold Realty Trust
James C Snyder Jr (EVP)Sell7,047$266,165.19 26,5365/11/2021  
AMERISAFE, Inc. logo
AMSF
AMERISAFE, Inc.
Sean Traynor (Director)Buy8,000$508,720.00 8,9255/11/2021  
Amesite Inc. logo
AMST
Amesite Inc.
Mark N Tompkins (Major Shareholder)Sell36,622$91,921.225/11/2021  
Amgen Inc. logo
AMGN
Amgen Inc.
Ronald D Sugar (Director)Sell1,000$250,590.00 16,9275/12/2021  
Amgen Inc. logo
AMGN
Amgen Inc.
Nancy A Grygiel (SVP)Sell2,500$631,275.00 14,9615/11/2021  
Anaplan, Inc. logo
PLAN
Anaplan, Inc.
Frank Calderoni (CEO)Sell45,000$2,447,100.00 1,344,4855/10/2021  
Apollo Global Management, Inc. logo
APO
Apollo Global Management, Inc.
Pauline Richards (Director)Buy2,120$121,179.205/11/2021  
Applied Materials, Inc. logo
AMAT
Applied Materials, Inc.
Daniel Durn (CFO)Sell5,000$639,450.005/10/2021  
ArcBest Co. logo
ARCB
ArcBest Co.
James A Ingram (COO)Sell7,174$637,625.12 40,3005/10/2021  
Arch Capital Group Ltd. logo
ACGL
Arch Capital Group Ltd.
Maamoun Rajeh (CEO)Sell29,790$1,207,090.80 371,0105/10/2021  
Arista Networks, Inc. logo
ANET
Arista Networks, Inc.
Kenneth Duda (SVP)Sell4,532$1,492,387.60 8115/10/2021  
Arlo Technologies, Inc. logo
ARLO
Arlo Technologies, Inc.
Gordon Mattingly (CFO)Sell23,000$137,770.00 652,1825/11/2021  
Athene Holding Ltd. logo
ATH
Athene Holding Ltd.
H Carl Mccall (Director)Sell4,800$301,728.00 28,7415/10/2021  
Atkore Inc. logo
ATKR
Atkore Inc.
A Mark Zeffiro (Director)Sell10,000$856,900.005/11/2021  
Aurinia Pharmaceuticals Inc. logo
AUPH
Aurinia Pharmaceuticals Inc.
Matthew Maxwell Donley (VP)Buy9,900$99,693.00 9,9005/11/2021  
Aurinia Pharmaceuticals Inc. logo
AUPH
Aurinia Pharmaceuticals Inc.
Peter Greenleaf (CEO)Buy5,125$54,888.75 10,4615/11/2021  
Aurinia Pharmaceuticals Inc. logo
AUPH
Aurinia Pharmaceuticals Inc.
Jill Leversage (Director)Buy2,500$27,400.00 3,7005/11/2021  
AutoNation, Inc. logo
AN
AutoNation, Inc.
Edward S Lampert (Major Shareholder)Sell32,847$3,474,555.665/10/2021  
AutoNation, Inc. logo
AN
AutoNation, Inc.
Rick L Burdick (Director)Sell21,264$2,249,518.56 59,3015/10/2021  
Axonics, Inc. logo
AXNX
Axonics, Inc.
Raymond W Cohen (CEO)Sell33,833$1,818,185.42 371,4975/10/2021  
Banc of California, Inc. logo
BANC
Banc of California, Inc.
Mary A Curran (Director)Buy5,000$87,800.00 14,1615/11/2021  
BeiGene, Ltd. logo
BGNE
BeiGene, Ltd.
Xiaodong Wang (Insider)Sell3,394$1,019,761.24 5,747,2715/10/2021  
Best Buy Co., Inc. logo
BBY
Best Buy Co., Inc.
Brian A Tilzer (Insider)Sell3,220$394,868.60 27,3755/10/2021  
Best Buy Co., Inc. logo
BBY
Best Buy Co., Inc.
Mathew Watson (CAO)Sell2,257$282,125.00 13,1455/10/2021  
Big 5 Sporting Goods Co. logo
BGFV
Big 5 Sporting Goods Co.
David Jessick (Director)Sell6,000$198,000.00 112,4635/10/2021  
Bill.com Holdings, Inc. logo
BILL
Bill.com Holdings, Inc.
John R Rettig (CFO)Sell6,500$926,835.00 64,0005/10/2021  
BioCryst Pharmaceuticals, Inc. logo
BCRX
BioCryst Pharmaceuticals, Inc.
George B Abercrombie (Director)Sell7,000$88,900.00 3,0005/10/2021  
BioMarin Pharmaceutical Inc. logo
BMRN
BioMarin Pharmaceutical Inc.
Jean Jacques Bienaime (CEO)Sell8,513$657,969.77 312,3525/10/2021  
BlackLine, Inc. logo
BL
BlackLine, Inc.
Mark Partin (CFO)Sell5,000$521,200.00 110,9105/10/2021  
BlackLine, Inc. logo
BL
BlackLine, Inc.
Mika Yamamoto (Director)Sell1,540$163,039.80 5,6955/10/2021  
Bloom Energy Co. logo
BE
Bloom Energy Co.
Kr Sridhar (CEO)Sell233,334$4,890,680.64 707,8455/10/2021  
Boise Cascade logo
BCC
Boise Cascade
Jill Twedt (SVP)Sell2,070$155,995.20 26,3065/10/2021  
Boise Cascade logo
BCC
Boise Cascade
Mack L Hogans (Director)Sell2,635$199,390.45 11,8955/10/2021  
BOK Financial Co. logo
BOKF
BOK Financial Co.
Steven G Bradshaw (CEO)Sell10,000$920,200.005/10/2021  
Boot Barn Holdings, Inc. logo
BOOT
Boot Barn Holdings, Inc.
John Hazen (Insider)Sell2,459$181,892.235/10/2021  
Brinker International, Inc. logo
EAT
Brinker International, Inc.
Douglas N Comings (COO)Sell1,529$97,060.92 22,4515/11/2021  
Cabot Co. logo
CBT
Cabot Co.
Karen A. Kalita (SVP)Sell10,757$675,969.88 21,6875/10/2021  
Caesars Entertainment, Inc. logo
CZR
Caesars Entertainment, Inc.
Stephanie Lepori (CAO)Sell7,500$754,350.00 27,7425/11/2021  
Cannae Holdings, Inc. logo
CNNE
Cannae Holdings, Inc.
Bryan D Coy (CFO)Buy1,000$35,830.00 2,0005/12/2021  
CareDx, Inc logo
CDNA
CareDx, Inc
Michael Goldberg (Director)Sell15,442$1,064,571.48 73,9455/10/2021  
CareDx, Inc logo
CDNA
CareDx, Inc
Peter Maag (Insider)Sell26,293$1,812,639.42 412,7575/10/2021  
Carvana Co. logo
CVNA
Carvana Co.
Thomas Taira (Insider)Sell12,500$3,017,375.00 57,6475/10/2021  
Carvana Co. logo
CVNA
Carvana Co.
Mark W Jenkins (CFO)Sell10,000$2,195,800.00 41,1995/10/2021  
CenterPoint Energy, Inc. logo
CNP
CenterPoint Energy, Inc.
Jason P Wells (CFO)Buy10,000$240,600.005/11/2021  
ChannelAdvisor Co. logo
ECOM
ChannelAdvisor Co.
Janet Raye Cowell (Director)Sell20,000$457,000.005/11/2021  
Charles River Laboratories International, Inc. logo
CRL
Charles River Laboratories International, Inc.
George Massaro (Director)Sell371$118,742.26 5,6965/11/2021  
Charter Communications, Inc. logo
CHTR
Charter Communications, Inc.
David C Merritt (Director)Sell1,000$697,450.00 8,9075/10/2021  
Chevron Co. logo
CVX
Chevron Co.
Enrique Hernandez, Jr. (Director)Sell5,101$565,139.795/10/2021  
Chubb Limited logo
CB
Chubb Limited
Joseph F Wayland (EVP)Sell4,000$702,640.005/10/2021  
Clean Harbors, Inc. logo
CLH
Clean Harbors, Inc.
Rod Marlin (Director)Sell6,910$659,214.00 14,4275/10/2021  
Clearway Energy, Inc. logo
CWEN
Clearway Energy, Inc.
Christopher S Sotos (CEO)Buy2,000$49,100.00 27,1005/10/2021  
Cloudflare, Inc. logo
NET
Cloudflare, Inc.
Thomas J Seifert (CFO)Sell20,000$1,401,400.00 70,1565/11/2021  
Collegium Pharmaceutical, Inc. logo
COLL
Collegium Pharmaceutical, Inc.
Shirley R Kuhlmann (EVP)Sell7,000$159,390.00 89,9905/10/2021  
CoreCivic, Inc. logo
CXW
CoreCivic, Inc.
Patrick D Swindle (EVP)Sell25,000$208,500.00 182,8715/10/2021  
Corsair Gaming, Inc. logo
CRSR
Corsair Gaming, Inc.
Michael G Potter (CFO)Sell7,500$246,375.00 7,5005/10/2021  
Cortexyme, Inc. logo
CRTX
Cortexyme, Inc.
Casey Lynch (CEO)Sell30,000$1,037,400.00 49,8955/10/2021  
Covetrus, Inc. logo
CVET
Covetrus, Inc.
Benjamin Wolin (CEO)Sell2,778$72,894.72 62,5965/11/2021  
CRA International, Inc. logo
CRAI
CRA International, Inc.
Nancy Hawthorne (Director)Sell3,798$317,702.70 13,9985/10/2021  
CSX Co. logo
CSX
CSX Co.
Mark Kenneth Wallace (EVP)Sell47,966$5,006,691.08 110,8765/10/2021  
CubeSmart logo
CUBE
CubeSmart
Joel D Keaton (COO)Sell15,132$627,978.00 58,2945/11/2021  
Customers Bancorp, Inc. logo
CUBI
Customers Bancorp, Inc.
Richard A Ehst (COO)Sell7,167$249,841.625/12/2021  
CVS Health Co. logo
CVS
CVS Health Co.
Thomas M Moriarty (EVP)Sell109,469$9,414,334.00 109,4695/10/2021  
Dave & Buster's Entertainment Inc logo
PLAY
Dave & Buster's Entertainment Inc
Scott Justin Bowman (CFO)Sell13,000$565,630.00 36,0445/10/2021  
Dave & Buster's Entertainment Inc logo
PLAY
Dave & Buster's Entertainment Inc
Brian Jenkins (CEO)Sell52,054$2,303,389.50 179,9595/10/2021  
Diamond Hill Investment Group, Inc. logo
DHIL
Diamond Hill Investment Group, Inc.
Thomas Edward Line (CFO)Sell1,500$266,250.00 18,8045/10/2021  
Diversified Healthcare Trust logo
DHC
Diversified Healthcare Trust
John L Harrington (Director)Sell19,500$70,590.005/12/2021  
DocuSign, Inc. logo
DOCU
DocuSign, Inc.
Scott V Olrich (COO)Sell13,335$2,567,120.85 219,4305/11/2021  
Easterly Government Properties, Inc. logo
DEA
Easterly Government Properties, Inc.
Darrell W Crate (Chairman)Sell2,000$42,500.00 7,4285/10/2021  
Eastman Chemical logo
EMN
Eastman Chemical
Mark K Cox (SVP)Sell64,127$8,029,341.67 6,1655/10/2021  
Elanco Animal Health Incorporated logo
ELAN
Elanco Animal Health Incorporated
R David Hoover (Insider)Buy25,000$811,000.00 41,9605/11/2021  
Enterprise Bancorp, Inc. logo
EBTC
Enterprise Bancorp, Inc.
Ken S Ansin (Director)Sell1,200$42,588.00 3,9995/10/2021  
Enterprise Bancorp, Inc. logo
EBTC
Enterprise Bancorp, Inc.
Ken S Ansin (Director)Sell1,200$40,308.00 3,9995/12/2021  
Equity Residential logo
EQR
Equity Residential
David J Neithercut (Director)Sell20,863$1,567,019.93 3,3925/10/2021  
Equity Residential logo
EQR
Equity Residential
Robert Garechana (CFO)Sell3,000$225,000.005/10/2021  
Everbridge, Inc. logo
EVBG
Everbridge, Inc.
Patrick Brickley (CFO)Sell13,548$1,529,569.20 31,8805/11/2021  
EVO Payments, Inc. logo
EVOP
EVO Payments, Inc.
Brendan F. Tansill (Insider)Sell10,000$274,700.00 161,0835/11/2021  
EVO Payments, Inc. logo
EVOP
EVO Payments, Inc.
James G Kelly (CEO)Sell15,000$412,200.00 161,0835/11/2021  
eXp World Holdings, Inc. logo
EXPI
eXp World Holdings, Inc.
Jason Gesing (CEO)Sell40,000$1,065,600.00 2,263,5535/10/2021  
Expeditors International of Washington, Inc. logo
EXPD
Expeditors International of Washington, Inc.
Christopher J Mcclincy (VP)Sell4,038$486,296.34 17,5695/10/2021  
Exterran Co. logo
EXTN
Exterran Co.
David Alan Barta (CFO)Buy8,600$34,916.00 87,9675/10/2021  
Facebook, Inc. logo
FB
Facebook, Inc.
Mark Zuckerberg (CEO)Sell68,000$20,944,000.005/10/2021  
Facebook, Inc. logo
FB
Facebook, Inc.
Mark Zuckerberg (CEO)Sell52,700$15,910,130.005/12/2021  
Federal Agricultural Mortgage Co. logo
AGM
Federal Agricultural Mortgage Co.
Sara Louise Faivre-Davis (Director)Sell500$50,160.005/12/2021  
Fidelity National Financial, Inc. logo
FNF
Fidelity National Financial, Inc.
Cary H Thompson (Director)Sell9,000$414,810.00 51,8265/11/2021  
Fifth Third Bancorp logo
FITB
Fifth Third Bancorp
Timothy Spence (President)Sell25,603$1,066,364.95 162,9185/11/2021  
FLIR Systems, Inc. logo
FLIR
FLIR Systems, Inc.
Sonia Galindo (SVP)Sell8,903$525,098.945/10/2021  
FLIR Systems, Inc. logo
FLIR
FLIR Systems, Inc.
Steven E Wynne (Director)Sell67,376$3,981,247.84 48,3675/10/2021  
FLIR Systems, Inc. logo
FLIR
FLIR Systems, Inc.
James J Cannon (CEO)Sell176,139$10,418,621.85 335,8365/10/2021  
FLIR Systems, Inc. logo
FLIR
FLIR Systems, Inc.
Carol P. Lowe (CFO)Sell40,000$2,364,000.005/10/2021  
FLIR Systems, Inc. logo
FLIR
FLIR Systems, Inc.
Travis Barton Johnson (CAO)Sell1,000$59,250.005/10/2021  
FormFactor, Inc. logo
FORM
FormFactor, Inc.
Mike Slessor (CEO)Sell25,000$895,750.00 372,5215/11/2021  
Fortive Co. logo
FTV
Fortive Co.
Steven M Rales (Director)Sell1,368,180$99,124,641.00 3,250,0725/10/2021  
Fortive Co. logo
FTV
Fortive Co.
Steven M Rales (Director)Sell60,107$4,194,867.53 3,250,0725/12/2021  
Forward Air Co. logo
FWRD
Forward Air Co.
Kyle R Mitchin (Insider)Sell8,660$841,145.80 18,5835/7/2021  
Gannett Co., Inc. logo
GCI
Gannett Co., Inc.
Theodore Peter Janulis (Director)Buy20,000$89,200.00 89,3665/11/2021  
Garmin Ltd. logo
GRMN
Garmin Ltd.
Philip Straub (Director)Sell5,898$853,676.525/10/2021  
Gatos Silver, Inc. logo
GATO
Gatos Silver, Inc.
Adam Dubas (Insider)Sell10,000$121,900.00 20,0975/11/2021  
Gatos Silver, Inc. logo
GATO
Gatos Silver, Inc.
Philip Pyle (VP)Sell15,000$180,450.00 81,2185/11/2021  
GATX Co. logo
GATX
GATX Co.
James M Conniff (Insider)Sell10,316$1,083,386.32 1,9165/10/2021  
Global Water Resources, Inc. logo
GWRS
Global Water Resources, Inc.
Andrew M Cohn (Director)Buy5,000$80,250.00 1,848,5375/10/2021  
Globus Medical, Inc. logo
GMED
Globus Medical, Inc.
James R. Tobin (Director)Sell25,000$1,799,000.00 25,0005/10/2021  
Gogo Inc. logo
GOGO
Gogo Inc.
Robert L Crandall (Director)Buy50,000$572,000.005/10/2021  
Good Times Restaurants Inc. logo
GTIM
Good Times Restaurants Inc.
Scott Lefever (VP)Sell24,768$117,648.00 64,6025/10/2021  
GoodRx Holdings, Inc. logo
GDRX
GoodRx Holdings, Inc.
Babak Azad (Insider)Sell12,500$412,750.00 12,5005/10/2021  
Goosehead Insurance, Inc logo
GSHD
Goosehead Insurance, Inc
Desiree Coleman (Major Shareholder)Sell14,927$1,399,854.06 386,7305/11/2021  
Goosehead Insurance, Inc logo
GSHD
Goosehead Insurance, Inc
Mark Evan Jones (CEO)Sell30,150$2,937,514.50 286,2015/10/2021  
GoPro, Inc. logo
GPRO
GoPro, Inc.
Dean Jahnke (VP)Sell24,555$261,265.20 255,4835/10/2021  
Great Southern Bancorp, Inc. logo
GSBC
Great Southern Bancorp, Inc.
John M Bugh (VP)Sell3,500$195,755.00 5,2905/12/2021  
Greenlight Capital Re, Ltd. logo
GLRE
Greenlight Capital Re, Ltd.
Daniel Roitman (Director)Buy55,000$497,750.00 340,1175/11/2021  
Guardant Health, Inc. logo
GH
Guardant Health, Inc.
Stanley J Meresman (Director)Sell4,934$656,271.34 8,9935/10/2021  
H.B. Fuller logo
FUL
H.B. Fuller
Nathan D Weaver (VP)Sell1,797$125,843.91 4,7845/10/2021  
HBB
Hamilton Beach Brands Holding
Paul Dwinelle Furlow (Director)Buy2,000$46,380.00 13,8495/10/2021  
Hancock Whitney Co. logo
HWC
Hancock Whitney Co.
Christine L. Pickering (Director)Sell615$30,467.105/11/2021  
HarborOne Bancorp, Inc. logo
HONE
HarborOne Bancorp, Inc.
Barry R Koretz (Director)Sell16,000$222,080.00 54,3715/11/2021  
Harpoon Therapeutics, Inc. logo
HARP
Harpoon Therapeutics, Inc.
Ansbert Gadicke (Major Shareholder)Sell17,133$373,499.405/10/2021  
Harpoon Therapeutics, Inc. logo
HARP
Harpoon Therapeutics, Inc.
Ansbert Gadicke (Major Shareholder)Sell29,684$609,412.525/12/2021  
HC2 Holdings, Inc. logo
HCHC
HC2 Holdings, Inc.
Avram A Glazer (Director)Buy83,159$310,183.075/10/2021  
HC2 Holdings, Inc. logo
HCHC
HC2 Holdings, Inc.
Avram A Glazer (Director)Buy69,233$263,085.405/12/2021  
Hersha Hospitality Trust logo
HT
Hersha Hospitality Trust
Michael A Leven (Director)Sell7,650$184,135.505/10/2021  
HollyFrontier Co. logo
HFC
HollyFrontier Co.
Bruce A Lerner (Insider)Buy3,000$104,220.00 30,6615/11/2021  
Hologic, Inc. logo
HOLX
Hologic, Inc.
Sean S. Daugherty (Insider)Sell4,001$260,145.02 26,6135/10/2021  
HomeTrust Bancshares, Inc. logo
HTBI
HomeTrust Bancshares, Inc.
Sidney A Biesecker (Director)Sell3,771$103,702.50 32,0385/12/2021  
Horizon Therapeutics Public Limited logo
HZNP
Horizon Therapeutics Public Limited
William F Daniel (Director)Sell20,000$1,731,200.00 20,0005/10/2021  
Huron Consulting Group Inc. logo
HURN
Huron Consulting Group Inc.
James H Roth (CEO)Sell645$35,965.205/10/2021  
ICU Medical, Inc. logo
ICUI
ICU Medical, Inc.
Virginia Ruth Sanzone (VP)Sell983$196,708.13 2,4055/11/2021  
IDEX Co. logo
IEX
IDEX Co.
Denise R Cade (SVP)Sell10,835$2,470,380.00 10,8935/10/2021  
IDEXX Laboratories, Inc. logo
IDXX
IDEXX Laboratories, Inc.
Jonathan W Ayers (Director)Sell512$277,002.24 653,7035/10/2021  
Immunic, Inc. logo
IMUX
Immunic, Inc.
Duane Nash (Chairman)Buy4,000$51,000.00 14,0325/12/2021  
Invesco Ltd. logo
IVZ
Invesco Ltd.
Andrew Tak Shing Lo (Director)Sell300,000$8,202,000.00 375,6055/11/2021  
Iron Mountain Incorporated logo
IRM
Iron Mountain Incorporated
Ernest W Cloutier (EVP)Sell44,199$1,855,474.02 75,0975/10/2021  
Jamf Holding Corp. logo
JAMF
Jamf Holding Corp.
Dean Hager (Director)Sell100,000$3,147,000.00 103,8465/10/2021  
JMP Group LLC logo
JMP
JMP Group LLC
Wedbush Securities Inc (Major Shareholder)Buy27,285$147,066.155/10/2021  
Kaiser Aluminum Co. logo
KALU
Kaiser Aluminum Co.
Neal E. West (CFO)Sell400$55,160.005/10/2021  
Karuna Therapeutics, Inc. logo
KRTX
Karuna Therapeutics, Inc.
Andrew Craig Miller (COO)Sell5,000$552,150.005/10/2021  
Karuna Therapeutics, Inc. logo
KRTX
Karuna Therapeutics, Inc.
Troy A Ignelzi (CFO)Sell7,000$770,490.00 20,0005/10/2021  
KLA Co. logo
KLAC
KLA Co.
Gary B Moore (Director)Buy377$113,484.54 12,0175/11/2021  
KLA Co. logo
KLAC
KLA Co.
Richard P Wallace (CEO)Sell15,000$4,649,250.00 61,9065/10/2021  
Landsea Homes Co. logo
LSEA
Landsea Homes Co.
Scott A Reed (Director)Buy13,500$123,120.00 1,4185/11/2021  
Lannett Company, Inc. logo
LCI
Lannett Company, Inc.
Patrick G. Lepore (Director)Buy20,000$83,600.00 260,3265/11/2021  
FRLG
Large Cap Growth Index-Linked Exchange Traded Notes due 2028
David A Viniar (Director)Sell5,000$1,862,300.00 657,4255/10/2021  
Lear Co. logo
LEA
Lear Co.
Jonathan F Foster (Director)Sell2,700$507,114.00 6,9265/11/2021  
Leggett & Platt, Incorporated logo
LEG
Leggett & Platt, Incorporated
Judy C Odom (Director)Sell15,177$859,777.05 50,6155/11/2021  
LendingClub Co. logo
LC
LendingClub Co.
Allan R Landon (Director)Buy2,500$33,775.00 5,0895/10/2021  
LPL Financial Holdings Inc. logo
LPLA
LPL Financial Holdings Inc.
Dan H Arnold (CEO)Sell15,594$2,407,869.54 219,6095/10/2021  
LPL Financial Holdings Inc. logo
LPLA
LPL Financial Holdings Inc.
Matthew J Audette (CFO)Sell50,905$7,859,222.95 29,9985/10/2021  
Magnite, Inc. logo
MGNI
Magnite, Inc.
Aaron Saltz (General Counsel)Sell5,000$159,800.00 279,8325/10/2021  
Magnite, Inc. logo
MGNI
Magnite, Inc.
Paul Caine (Director)Sell15,000$462,150.00 170,5295/10/2021  
MarineMax, Inc. logo
HZO
MarineMax, Inc.
Michael H. Mclamb (CFO)Sell4,000$274,840.005/10/2021  
MarineMax, Inc. logo
HZO
MarineMax, Inc.
William H Mcgill Jr (Chairman)Sell25,000$1,754,500.00 118,6885/10/2021  
MarineMax, Inc. logo
HZO
MarineMax, Inc.
W Brett Mcgill (CEO)Sell5,000$350,950.00 45,0445/10/2021  
Masonite International Co. logo
DOOR
Masonite International Co.
John H Chuang (Director)Buy10,000$1,246,600.005/11/2021  
Matador Resources logo
MTDR
Matador Resources
Billy E Goodwin (COO)Buy2,000$55,500.00 137,2645/11/2021  
Matson, Inc. logo
MATX
Matson, Inc.
Kevin L Stuck (VP)Sell1,982$123,974.105/11/2021  
Meritage Homes Co. logo
MTH
Meritage Homes Co.
Gerald W. Haddock (Director)Sell2,000$225,180.005/11/2021  
MetLife, Inc. logo
MET
MetLife, Inc.
Marlene Debel (EVP)Sell11,000$710,380.00 43,1125/11/2021  
MGM Resorts International logo
MGM
MGM Resorts International
Alexis Herman (Director)Sell7,500$300,000.00 2,5505/10/2021  
MGP Ingredients, Inc. logo
MGPI
MGP Ingredients, Inc.
Karen Seaberg (Director)Sell4,000$255,880.00 1,1145/10/2021  
Microchip Technology Incorporated logo
MCHP
Microchip Technology Incorporated
Mitchell R Little (VP)Sell2,529$368,702.91 6,2355/10/2021  
Micron Technology, Inc. logo
MU
Micron Technology, Inc.
Joel L Poppen (SVP)Sell4,984$397,025.44 257,1975/11/2021  
Mistras Group, Inc. logo
MG
Mistras Group, Inc.
Manuel N Stamatakis (Director)Buy15,000$149,700.00 175,3725/11/2021  
Monolithic Power Systems, Inc. logo
MPWR
Monolithic Power Systems, Inc.
Saria Tseng (VP)Sell2,196$716,796.365/10/2021  
Monolithic Power Systems, Inc. logo
MPWR
Monolithic Power Systems, Inc.
Michael Hsing (CEO)Sell8,479$2,767,545.60 1,018,3735/10/2021  
Monolithic Power Systems, Inc. logo
MPWR
Monolithic Power Systems, Inc.
Theodore Blegen (CFO)Sell1,562$509,836.80 154,5435/10/2021  
Motorola Solutions, Inc. logo
MSI
Motorola Solutions, Inc.
Daniel G Pekofske (CAO)Sell1,564$312,800.005/10/2021  
NanoString Technologies, Inc. logo
NSTG
NanoString Technologies, Inc.
Kirk Malloy (Director)Sell1,500$95,475.00 2,4905/10/2021  
NetScout Systems, Inc. logo
NTCT
NetScout Systems, Inc.
John Downing (EVP)Sell3,000$80,040.00 91,6165/10/2021  
NetScout Systems, Inc. logo
NTCT
NetScout Systems, Inc.
Michael Szabados (COO)Sell7,500$197,625.00 32,0265/11/2021  
New Fortress Energy Inc. logo
NFE
New Fortress Energy Inc.
John J. Mack (Director)Buy24,000$957,120.00 1,103,0135/10/2021  
Newmont Co. logo
NEM
Newmont Co.
Nancy Lipson (EVP)Sell2,775$191,475.00 35,6755/10/2021  
NextEra Energy, Inc. logo
NEE
NextEra Energy, Inc.
James L. Robo (CEO)Sell118,000$8,678,900.005/11/2021  
Nine Energy Service, Inc. logo
NINE
Nine Energy Service, Inc.
David Crombie (Insider)Sell44,248$82,743.76 139,2985/10/2021  
Nkarta, Inc. logo
NKTX
Nkarta, Inc.
Nadir Mahmood (Insider)Sell3,000$81,480.005/10/2021  
Norfolk Southern Co. logo
NSC
Norfolk Southern Co.
Clyde H. Allison, Jr. (VP)Sell3,700$1,066,710.00 45,6325/11/2021  
Northwest Pipe logo
NWPX
Northwest Pipe
Keith R Larson (Director)Sell1,500$48,000.00 24,8135/10/2021  
NovoCure Limited logo
NVCR
NovoCure Limited
Ely Benaim (Insider)Sell1,833$347,628.45 35,0925/10/2021  
Nu Skin Enterprises, Inc. logo
NUS
Nu Skin Enterprises, Inc.
D Matthew Dorny (General Counsel)Sell6,200$365,304.00 55,3595/11/2021  
nVent Electric plc logo
NVT
nVent Electric plc
Randall J Hogan (Director)Sell77,764$2,497,779.68 250,5285/10/2021  
Oak Street Health, Inc. logo
OSH
Oak Street Health, Inc.
Geoffrey M Price (COO)Sell25,000$1,384,250.00 3,817,3895/11/2021  
Oak Valley Bancorp logo
OVLY
Oak Valley Bancorp
Ronald C Martin (Director)Sell3,000$51,810.00 191,6975/12/2021  
Olin Co. logo
OLN
Olin Co.
James A Varilek (COO)Sell71,250$3,348,750.00 83,6335/10/2021  
Option Care Health, Inc. logo
OPCH
Option Care Health, Inc.
John Charles Rademacher (CEO)Buy10,000$164,200.00 10,0005/11/2021  
Option Care Health, Inc. logo
OPCH
Option Care Health, Inc.
Michael H Shapiro (CFO)Buy2,500$40,825.00 2,5005/11/2021  
Oracle Co. logo
ORCL
Oracle Co.
Lawrence Joseph Ellison (Chairman)Sell1,400,000$108,262,000.00 1,140,132,3535/12/2021  
O'Reilly Automotive, Inc. logo
ORLY
O'Reilly Automotive, Inc.
Jonathan Wyatt Andrews (SVP)Sell3,125$1,764,781.25 3,6835/10/2021  
O'Reilly Automotive, Inc. logo
ORLY
O'Reilly Automotive, Inc.
John Raymond Murphy (Director)Sell472$265,188.485/11/2021  
OrthoPediatrics Corp. logo
KIDS
OrthoPediatrics Corp.
Terry D Schlotterback (Director)Sell4,700$296,241.005/10/2021  
OrthoPediatrics Corp. logo
KIDS
OrthoPediatrics Corp.
Daniel J Gerritzen (General Counsel)Sell4,000$252,120.005/10/2021  
Packaging Co. of America logo
PKG
Packaging Co. of America
Charles J Carter (SVP)Sell9,161$1,416,015.77 39,5725/11/2021  
Palo Alto Networks, Inc. logo
PANW
Palo Alto Networks, Inc.
Lee Klarich (EVP)Sell2,360$790,600.005/11/2021  
Patrick Industries, Inc. logo
PATK
Patrick Industries, Inc.
Andy L Nemeth (CEO)Sell2,000$196,700.00 252,9845/10/2021  
Penske Automotive Group, Inc. logo
PAG
Penske Automotive Group, Inc.
John Barr (Director)Sell5,000$463,950.00 11,2065/10/2021  
Pentair plc logo
PNR
Pentair plc
John H. Jacko (EVP)Sell30,979$2,153,350.29 10,7905/10/2021  
PetIQ, Inc. logo
PETQ
PetIQ, Inc.
Robert Michael Herrman (General Counsel)Sell19,324$816,439.00 18,3845/10/2021  
Philip Morris International Inc. logo
PM
Philip Morris International Inc.
Mario Masseroli (Insider)Sell1,734$170,469.545/10/2021  
PIMCO Energy and Tactical Credit Opportunities Fund logo
NRGX
PIMCO Energy and Tactical Credit Opportunities Fund
Thibault Christian Stracke (insider)Buy10,000$113,200.005/10/2021  
Ping Identity Holding Corp. logo
PING
Ping Identity Holding Corp.
Vep Group, Llc (Major Shareholder)Sell5,746,985$135,628,846.005/10/2021  
PMV Pharmaceuticals, Inc. logo
PMVP
PMV Pharmaceuticals, Inc.
Thilo Schroeder (Director)Sell1,787$63,742.295/10/2021  
Pool Co. logo
POOL
Pool Co.
Romain Kenneth G St (VP)Sell9,310$4,142,670.70 88,5175/10/2021  
Precigen, Inc. logo
PGEN
Precigen, Inc.
Trading S.A. Ares (Major Shareholder)Sell114,603$726,583.02 26,699,4035/10/2021  
PriceSmart, Inc. logo
PSMT
PriceSmart, Inc.
Robert E Price (Director)Sell10,000$873,000.00 805/10/2021  
PriceSmart, Inc. logo
PSMT
PriceSmart, Inc.
Robert E Price (Director)Sell905$76,807.35 805/12/2021  
PriceSmart, Inc. logo
PSMT
PriceSmart, Inc.
Philanthropies Foundatio Price (Major Shareholder)Sell9,096$773,160.00 3,938,9515/11/2021  
Q2 Holdings, Inc. logo
QTWO
Q2 Holdings, Inc.
Kimberly Rutledge (SVP)Sell14,635$1,380,226.85 60,3305/10/2021  
Quaker Chemical Co. logo
KWR
Quaker Chemical Co.
Michael F Barry (CEO)Sell15,000$3,546,300.00 102,2195/10/2021  
Quanta Services, Inc. logo
PWR
Quanta Services, Inc.
Nicholas M Grindstaff (VP)Sell8,454$855,713.88 31,8685/10/2021  
Reading International, Inc. logo
RDI
Reading International, Inc.
Margaret Cotter (Insider)Sell12,000$69,120.005/12/2021  
Republic Services, Inc. logo
RSG
Republic Services, Inc.
Jeffrey A Hughes (EVP)Sell6,770$754,448.80 6,2845/10/2021  
Revolve Group, Inc. logo
RVLV
Revolve Group, Inc.
Michael Mente (CEO)Sell38,582$1,815,283.10 6,2975/12/2021  
Revolve Group, Inc. logo
RVLV
Revolve Group, Inc.
Mmmk Development, Inc. (Major Shareholder)Sell190,623$9,290,965.02 6,2975/11/2021  
Revolve Group, Inc. logo
RVLV
Revolve Group, Inc.
Michael Mente (CEO)Sell200,000$10,192,000.00 73,0005/10/2021  
Revolve Group, Inc. logo
RVLV
Revolve Group, Inc.
Jesse Timmermans (CFO)Sell100,000$5,099,000.00 4,8305/10/2021  
Reynolds Consumer Products Inc. logo
REYN
Reynolds Consumer Products Inc.
Stephen C Estes (Insider)Buy1,500$46,890.00 3,7015/11/2021  
salesforce.com, inc. logo
CRM
salesforce.com, inc.
Parker Harris (Insider)Sell4,300$919,297.00 85,4315/11/2021  
Sally Beauty Holdings, Inc. logo
SBH
Sally Beauty Holdings, Inc.
Mark Gregory Spinks (Insider)Sell15,324$363,791.76 41,1255/11/2021  
Semler Scientific, Inc. logo
SMLR
Semler Scientific, Inc.
Douglas Murphy-Chutorian (CEO)Sell1,250$133,675.005/10/2021  
Service Co. International logo
SCI
Service Co. International
Tammy R Moore (Insider)Sell3,689$208,465.39 38,6165/10/2021  
Shattuck Labs, Inc. logo
STTK
Shattuck Labs, Inc.
Taylor Schreiber (CEO)Sell8,188$220,912.24 5,2745/10/2021  
Shattuck Labs, Inc. logo
STTK
Shattuck Labs, Inc.
Taylor Schreiber (CEO)Sell14,242$388,664.18 5,2745/12/2021  
Shattuck Labs, Inc. logo
STTK
Shattuck Labs, Inc.
Josiah Hornblower (Director)Sell8,227$221,635.385/10/2021  
Shattuck Labs, Inc. logo
STTK
Shattuck Labs, Inc.
Josiah Hornblower (Director)Sell14,057$383,334.395/12/2021  
Silk Road Medical, Inc logo
SILK
Silk Road Medical, Inc
Erica J Rogers (CEO)Sell11,000$535,150.00 142,6165/11/2021  
SilverSun Technologies, Inc. logo
SSNT
SilverSun Technologies, Inc.
Ault Global Holdings, Inc. (Major Shareholder)Buy6,000$44,280.005/11/2021  
SiteOne Landscape Supply, Inc. logo
SITE
SiteOne Landscape Supply, Inc.
John T Guthrie (CFO)Sell3,918$795,745.80 15,9095/10/2021  
Southwest Gas Holdings, Inc. logo
SWX
Southwest Gas Holdings, Inc.
Eric Debonis (SVP)Sell2,800$201,152.00 14,3625/10/2021  
Spark Networks SE logo
LOV
Spark Networks SE
Viii Lp Canaan (Major Shareholder)Sell12,000$73,080.005/12/2021  
STAAR Surgical logo
STAA
STAAR Surgical
Caren L Mason (CEO)Sell107,000$12,336,030.005/11/2021  
STAAR Surgical logo
STAA
STAAR Surgical
Graydon C Hansen (VP)Sell16,606$1,848,579.925/12/2021  
STAAR Surgical logo
STAA
STAAR Surgical
James E Francese (VP)Sell11,583$1,456,214.76 54,7885/10/2021  
TALS
Talaris Therapeutics, Inc.
Longitude Capital Partners Iii (Major Shareholder)Buy235,000$3,995,000.005/11/2021  
Tesla, Inc. logo
TSLA
Tesla, Inc.
Jerome M Guillen (Insider)Sell10,000$6,440,600.00 60,5985/10/2021  
The Allstate Co. logo
ALL
The Allstate Co.
Suren Gupta (EVP)Sell62,657$8,473,106.11 132,1835/10/2021  
The Allstate Co. logo
ALL
The Allstate Co.
Mario Rizzo (CFO)Sell12,763$1,700,797.38 49,4905/10/2021  
The Allstate Co. logo
ALL
The Allstate Co.
John E Dugenske (Insider)Sell151,691$20,520,758.48 118,4445/10/2021  
The Bancorp, Inc. logo
TBBK
The Bancorp, Inc.
John Leto (EVP)Sell44,820$1,102,572.00 183,9245/11/2021  
The Kraft Heinz Company logo
KHC
The Kraft Heinz Company
Bruno Keller (Insider)Sell19,725$858,629.25 162,1315/10/2021  
The Scotts Miracle-Gro Company logo
SMG
The Scotts Miracle-Gro Company
Susan Hagedorn (Major Shareholder)Sell1,386$337,380.12 14,640,7705/10/2021  
TherapeuticsMD, Inc. logo
TXMD
TherapeuticsMD, Inc.
Edward Borkowski (EVP)Sell44,252$46,022.08 103,5005/11/2021  
TherapeuticsMD, Inc. logo
TXMD
TherapeuticsMD, Inc.
Robert G Finizio (CEO)Sell67,697$70,404.88 18,059,3345/11/2021  
Tractor Supply logo
TSCO
Tractor Supply
Christi C Korzekwa (SVP)Sell8,836$1,767,465.08 16,3915/10/2021  
Travelzoo logo
TZOO
Travelzoo
Holger Bartel (CEO)Sell9,500$167,960.00 51,3495/10/2021  
Trex Company, Inc. logo
TREX
Trex Company, Inc.
William R Gupp (SVP)Sell7,288$749,570.805/12/2021  
Trex Company, Inc. logo
TREX
Trex Company, Inc.
James E Cline (Director)Sell8,982$923,798.70 27,1245/12/2021  
Tyler Technologies, Inc. logo
TYL
Tyler Technologies, Inc.
Luther King Jr (Director)Sell7,935$3,076,399.50 80,7675/12/2021  
U.S. Physical Therapy, Inc. logo
USPH
U.S. Physical Therapy, Inc.
Mark J Brookner (Director)Sell1,000$120,250.00 14,6005/11/2021  
UniFirst Co. logo
UNF
UniFirst Co.
Michael Iandoli (Director)Sell500$111,500.00 4,7405/10/2021  
Unity Software Inc. logo
U
Unity Software Inc.
Ruth Ann Keene (SVP)Sell7,000$583,170.00 77,1215/10/2021  
Univar Solutions Inc. logo
UNVR
Univar Solutions Inc.
Christopher D Pappas (Director)Buy5,000$128,550.00 45,9265/12/2021  
Uranium Energy Corp. logo
UEC
Uranium Energy Corp.
David Kong (Director)Sell55,000$176,550.00 185,9485/10/2021  
Urban Outfitters, Inc. logo
URBN
Urban Outfitters, Inc.
Azeez Hayne (CAO)Sell2,261$90,440.005/10/2021  
Veeva Systems Inc. logo
VEEV
Veeva Systems Inc.
Alan Mateo (EVP)Sell2,347$600,738.12 4,9445/10/2021  
Vera Bradley, Inc. logo
VRA
Vera Bradley, Inc.
P. Michael Miller (Director)Sell40,549$444,011.555/11/2021  
Verizon Communications Inc. logo
VZ
Verizon Communications Inc.
Kumara Guru Gowrappan (CEO)Sell43,238$2,569,201.96 14,0775/10/2021  
Vista Outdoor Inc. logo
VSTO
Vista Outdoor Inc.
Kelly L Reisdorf (Insider)Sell5,570$199,795.90 18,5035/10/2021  
Watts Water Technologies, Inc. logo
WTS
Watts Water Technologies, Inc.
Elie Melhem (Insider)Sell2,190$303,315.00 16,0675/11/2021  
WEC Energy Group, Inc. logo
WEC
WEC Energy Group, Inc.
Charles R Matthews (CEO)Sell10,580$1,043,293.80 12,7865/10/2021  
Whirlpool Co. logo
WHR
Whirlpool Co.
Marc R Bitzer (CEO)Sell45,793$11,602,114.485/10/2021  
Whirlpool Co. logo
WHR
Whirlpool Co.
James W Peters (CFO)Sell9,000$2,271,960.00 18,9955/10/2021  
Zendesk, Inc. logo
ZEN
Zendesk, Inc.
Inamarie Johnson (Insider)Sell1,561$200,245.08 23,5495/11/2021  
Zendesk, Inc. logo
ZEN
Zendesk, Inc.
Soren Abildgaard (EVP)Sell408$55,112.64 6285/10/2021  
Zions Bancorporation, National Association logo
ZION
Zions Bancorporation, National Association
David E Blackford (EVP)Sell551$32,239.015/11/2021  
Zogenix, Inc. logo
ZGNX
Zogenix, Inc.
Cam L Garner (Director)Buy15,000$285,450.005/10/2021  
Zoom Video Communications, Inc. logo
ZM
Zoom Video Communications, Inc.
Kelly Steckelberg (CFO)Sell6,700$1,928,863.00 6,7005/10/2021  
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Insider Trading - What You Need to Know

We all like having inside information. But much of the time, what’s passed off as inside information, is just idle gossip. In other cases, we know that having inside information is really a way for an organization to profit from delivering what is viewed as premium content. Still, the basic idea behind inside information is that you are getting information that the general public does not have.

When it comes to investing, this practice of acting on inside information is known as insider trading. In recent years, insider trading may bring to mind a celebrity such as Martha Stewart. Going back to the 1980s, one of the most popular movies of the decade, Wall Street, is at its core a movie that highlights the dangers of insider trading.

The idea of price fixing, athletic competitions being fixed, even athletes using performance-enhancing drugs spark strong emotions and opinions in our society. That’s why it may surprise you to know that insider trading – in some cases, is perfectly legal.

This article will provide a definition of insider trading, who constitutes an insider, why inside trading is harmful, and when – and under what conditions - insider trading can be legal.

What is insider trading?

Insider trading is the action of buying or selling (“trading”) a security based on material information that is not available to the public. Although generally assumed to be illegal, there are times when insider trading can be legal. In these cases, the trades have to be properly disclosed to the SEC (more on that below).

For insider trading to be illegal, essentially three conditions have to be met:

  1. Information has to be passed along by an insider.
  2. That information has to be acted upon (traded) by the individual(s) receiving the inside information.
  3. The trading activity has to occur before the inside information becomes available to the general public.

Who is an insider?

If your friend’s girlfriend’s uncle passes along a “hot tip” that they received, your first question – that is if you thought the tip was credible at all – might be who’s your source? That is a critical distinction for insider trading. To constitute insider trading, the private or confidential information being passed along must be issued by an insider.

An insider is defined as someone who meets one of two conditions:

  1. They are an individual who has access to valuable non-pubic information about a corporation. Although this includes a company’s directors and high-level executives, it has been expanded in recent years to include virtually any employee of a company. In this case, the individual is presumed to have a fiduciary interest in the company and therefore should put the company’s interests ahead of their own.
  2. They have an ownership stake in the company’s stock that equals over 10% of that company’s equity.

However, in the case of insider trading, the definition of “insider” expands to include any individual who buys or sells shares of a security based on inside information material to that security’s price that is not public knowledge. In recent history, one of the more recognizable cases of insider trading involved Martha Stewart, who was convicted of insider trading for selling shares based on a tip that she received from a broker at Merrill Lynch (someone who met condition #1 above). And in 2018, a professional football player Mychal Kendricks was indicted for insider trading after acting upon information he received from an acquaintance who was a broker with Goldman Sachs. 

This brings up a critical point to understand insider trading. The SEC makes no distinction between the "tipper" and the "tipee". In the two instances above, neither Stewart nor Kendricks worked for the company or an investment firm. In the case of Stewart, she was an existing shareholder. In the case of Kendricks, he entered and exited trades based on the information he received. However, in both cases, they were indicted for insider trading because they acted on the information they received before the information was available to the public.

So getting back to our example, if your friend’s girlfriends uncle was the Vice President of the company that the “hot tip” is based on, you should tread very carefully before deciding to take action. However, simply being informed of the tip does not constitute an illegal activity.

Can someone be guilty of insider trading for idle conversation?

For an individual to be guilty of insider trading do they have to have intent? A Supreme Court ruling, Dirks v. SEC cites “the mere disclosure of material, nonpublic information, by itself, does not necessarily constitute a breach of an insider’s fiduciary duties.” Another case, SEC v Switzer, upheld this ruling. In that case, a former college football coach, Barry Switzer, overheard the former CEO of Texas International discussing nonpublic, material information with his wife while at a high school track meets and act upon that information. The case went to trial and the Supreme Court ruled that the CEO did not breach his fiduciary duties.

However, this is still considered a high standard to be met. For example, in the Switzer case, the CEO was talking to his wife in what he believed to be a private conversation. However, if he had been talking directly to Switzer, even if he had no reason to believe his information would be acted upon, he could have been guilty of insider trading. 

Why is insider trading harmful?

For companies, insider trading is a violation of an insider’s fiduciary duty. In their fiduciary role, they are supposed to put their client’s (in this case, their company’s) interests ahead of their own. By trading on inside information, particularly when it involves selling shares that can affect a company’s stock price; they are putting their own interests, or the interests of other, select individuals, ahead of the company.

A second reason is one that affects both retail and individual investors and that is the notion that insider trading violates the principle of transparency. In a properly functioning market, all investors have access to the same information and can make their investment decisions accordingly. The very nature of insider trading violates transparency because the intention is to give a select few investors a material advantage over the vast majority of investors. If allowed to proceed unpunished, individual investors would quickly lose confidence in the market and could easily choose not to participate in the market.

Insider trading versus inside information

The word “Insider” has become a, perhaps overused, marketing term that many companies, particularly content providers, use as a way to increase their subscriber base for paid content. The idea is that by becoming an “insider”, subscribers have access to information that non-subscribers do not. This, however, is not illegal because all consumers have the same access to the information; it’s just a question of whether or not they are willing to pay for it.

In the specific context of insider trading, the key distinction between insider trading and insider information is the idea of taking action on the information. For example, if an executive of a company knows that their company is going to buy another company and they pass that information along to family and friends that is not, by itself, insider trading. However, it becomes insider trading as soon as anyone acts upon that information to buy or sell the company’s stock in advance of that announcement becoming public information. Using the same logic, if someone who became privy to that information initiates their trade after the information goes public, they are not guilty of insider trading. So the key difference between insider trading and inside information is the word “trading”.

When is insider trading legal?

There are times when insider trading is legal. Insiders (as defined above) can, and frequently do, trade stock in their own company. These trades, however, are highly restricted and must meet certain conditions. The insiders conducting the trade must report the trade to the SEC within two business days of when the trade occurred. So if an insider sells 5,000 shares on a Monday, assuming there is no Holiday in between, they would have to report this sale by Wednesday. If the trade is done on a Friday, they would have to report it by the following Tuesday. The SEC has a specific form, called Form 4, that will detail the trade and make it public record. The insider must also file a Form 14a, that lists all of the company’s directors and officers along with any share interest they may have.

Obviously, knowledge of whether a company was buying or selling a large number of shares would be valuable to an individual investor. This is particularly true in the case that shares of a company are being purchased. SEC rules prevent insiders from trading company stock within any six-month period, so if an insider is buying their company’s stock an individual investor can reasonably surmise that the company’s growth prospects are good.

Information on insider trading activity is available on many financial websites; however, in some cases, the filings do not appear right away. For the most current information, investors can go to the SEC’s EDGAR (Electronic Data Gathering, Analysis, and Retrieval) database. You will first have to search the database for a company’s CIK number, and then you can find any individual filings related to that company.

How is legal and illegal insider trading different?

The key distinction between insider trading is legal and illegal is one of intent. In the case of legal insider trading, a company is tipping the public to their actions by way of an SEC filing that is available for public scrutiny. Since a company may have many insiders, sometimes numbering in the hundreds, the insider information may paint a contradictory picture. In this case, individual investors will still have to rely on fundamental analysis or technical analysis to discern price movement.

In the case of illegal insider trading, the intent is to act on inside information before the public has knowledge of it. In this way, a select few “insiders” can profit from the information.

The bottom line on insider trading

Is it illegal or just idle gossip? Is the information from a credible source with access to private company information, or is it simply speculation based on publicly available information? These are two questions that are at the heart of insider trading. The practice of allowing a select few groups of investors to profit by letting them buy or sell a stock or security based on material information that is not available to the general public is, and always be considered, illegal in the eyes of the Securities & Exchange Commission. For this reason, many companies make even the lowest level employees sign non-disclosure agreements that can lead to termination, or at least censure if they knowingly pass along material information about the company to outside sources.

Insider trading requires access to material information that is traded upon before that information is available to the public. To be guilty of insider trading, such as the case of Martha Stewart, an individual does not have to be an employee of the company or an investment firm with access to the knowledge (i.e. the tipper). Even the person who receives the tip can be indicted and convicted if they took action that allowed them to profit from the information. However, just being presented with information does not make an individual guilty of insider trading.

Although generally assumed to be illegal in all cases, insider trading has been around for decades, and in some cases is entirely legal. If properly disclosed, knowledge of insider trading activity can be a tremendous benefit to institutional and retail investors. In fact, some analysts and investment brokers use insider trading information to supplement their fundamental analysis or technical analysis of a company.

 

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