S&P 500   4,549.34
DOW   36,054.43
QQQ   385.05
14 best consumer staples dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Ex dividend date vs record date: What’s the difference?
How to find blue-chip dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
What is the consumer staples sector?
6 best online and direct marketing retail stocks to invest in
Henry Ford Would NEVER Have Seen This Coming (Ad)
What does consumer price index measure?
Last chance to set up your portfolio for OPEC cuts
S&P 500   4,549.34
DOW   36,054.43
QQQ   385.05
14 best consumer staples dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Ex dividend date vs record date: What’s the difference?
How to find blue-chip dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
What is the consumer staples sector?
6 best online and direct marketing retail stocks to invest in
Henry Ford Would NEVER Have Seen This Coming (Ad)
What does consumer price index measure?
Last chance to set up your portfolio for OPEC cuts
S&P 500   4,549.34
DOW   36,054.43
QQQ   385.05
14 best consumer staples dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Ex dividend date vs record date: What’s the difference?
How to find blue-chip dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
What is the consumer staples sector?
6 best online and direct marketing retail stocks to invest in
Henry Ford Would NEVER Have Seen This Coming (Ad)
What does consumer price index measure?
Last chance to set up your portfolio for OPEC cuts
S&P 500   4,549.34
DOW   36,054.43
QQQ   385.05
14 best consumer staples dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
Ex dividend date vs record date: What’s the difference?
How to find blue-chip dividend stocks
Trading Experts Call It “The Perfect Tesla Trade” (Ad)
What is the consumer staples sector?
6 best online and direct marketing retail stocks to invest in
Henry Ford Would NEVER Have Seen This Coming (Ad)
What does consumer price index measure?
Last chance to set up your portfolio for OPEC cuts

Insider Trading Activity (Form 4 Filings)

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 (CEO, CFO, COO), its board of directors, and its major shareholders. Insiders are required to submit their trading activity to the Securities and Exchange Commission through Form 4 filings. Tracking a company's insider trading activity is an effective way to identify management's true outlook on the company's future growth and prospects. Below you will find MarketBeat's free insider trading tracker which reports the latest insider buying and selling activity from U.S., Canadian, and U.K. stock exchanges. What you need to know about insider trading.

MarketRank™ evaluates a company based on dividend strength, earnings, valuation, analysts forecasts, and more.
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Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
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Analyst consensus is the average investment recommendation among Wall Street research analysts.
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Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyInsider NameBuy/SellShares Bought/SoldTotal TransactionShares Held After TransactionTransaction DateDetails
ACI Worldwide, Inc. stock logo
ACIW
ACI Worldwide
Alessandro Silva (CRO)Sell17,817$493,887.24 52,06212/4/2023
Advance Auto Parts, Inc. stock logo
AAP
Advance Auto Parts
Kristen L Soler (EVP)Buy1,000$52,870.00 12,19712/5/2023
Agilysys, Inc. stock logo
AGYS
Agilysys
Michael A Kaufman (Director)Sell20,925$1,835,122.50 3,952,93112/4/2023
Alector, Inc. stock logo
ALEC
Alector
Gary Romano (Insider)Sell5,035$27,994.60 202,31412/4/2023
Alector, Inc. stock logo
ALEC
Alector
Marc Grasso (CFO)Sell4,574$25,431.44 150,67312/4/2023
Alector, Inc. stock logo
ALEC
Alector
Arnon Rosenthal (CEO)Sell23,831$132,500.36 2,019,21712/4/2023
Alexandria Real Estate Equities, Inc. stock logo
ARE
Alexandria Real Estate Equities
Madeleine Thorp Alsbrook (EVP)Sell4,854$580,295.70 19,74012/4/2023
Alliance Resource Partners, L.P. stock logo
ARLP
Alliance Resource Partners
Kathleen Mowry (Major Shareholder)Sell33,087$682,253.94 16,202,35712/5/2023
American Eagle Outfitters, Inc. stock logo
AEO
American Eagle Outfitters
Michael R Rempell (EVP)Sell40,000$782,000.00 172,18612/4/2023
Amkor Technology, Inc. stock logo
AMKR
Amkor Technology
Roger Anthony Carolin (Director)Sell20,000$566,200.00 48,39212/4/2023
AMREP Co. stock logo
AXR
AMREP
James H Dahl (Major Shareholder)Buy1,500$27,465.00 246,85112/4/2023
Ardelyx, Inc. stock logo
ARDX
Ardelyx
David P Rosenbaum (Insider)Sell10,272$51,360.00 349,27112/5/2023
Banc of California, Inc. stock logo
BANC
Banc of California
Richard J Lashley (Director)Sell200,000$2,534,000.00 2,463,14312/5/2023
BancFirst Co. stock logo
BANF
BancFirst
Kevin Lawrence (EVP)Sell5,000$460,000.00 10,00012/6/2023
Berry Global Group, Inc. stock logo
BERY
Berry Global Group
Mark W Miles (CFO)Sell40,000$2,651,600.00 84,50212/4/2023
Berry Global Group, Inc. stock logo
BERY
Berry Global Group
James Till (insider)Sell11,903$777,503.9612/5/2023
BlackRock Capital Allocation Term Trust stock logo
BCAT
BlackRock Capital Allocation Term Trust
Saba Capital Management, L.P. (Major Shareholder)Buy34,254$509,356.98 12,908,69112/6/2023
Blueprint Medicines Co. stock logo
BPMC
Blueprint Medicines
Christopher K Murray (Insider)Sell600$42,858.00 24,49512/4/2023
Boise Cascade stock logo
BCC
Boise Cascade
Sue Ying Taylor (Director)Sell1,503$170,575.47 8,13912/5/2023
Boise Cascade stock logo
BCC
Boise Cascade
Sue Ying Taylor (Director)Sell1,503$170,575.47 8,13912/5/2023
Brookdale Senior Living Inc. stock logo
BKD
Brookdale Senior Living
Marcus E Bromley (Director)Sell10,000$53,800.00 160,99612/4/2023
Central Garden & Pet stock logo
CENT
Central Garden & Pet
John Edward Hanson (Insider)Sell6,000$235,380.00 34,50812/5/2023
Central Garden & Pet stock logo
CENTA
Central Garden & Pet
John Edward Hanson (Insider)Sell6,000$235,380.00 34,50812/5/2023
Cogent Communications Holdings, Inc. stock logo
CCOI
Cogent Communications
James Bubeck (CRO)Sell1,920$126,950.40 37,14212/5/2023
Coinbase Global, Inc. stock logo
COIN
Coinbase Global
Brian Armstrong (CEO)Sell23,075$3,274,111.7512/4/2023
Coinbase Global, Inc. stock logo
COIN
Coinbase Global
Paul Grewal (Insider)Sell10,000$1,450,900.00 61,66512/4/2023
Commerce Bancshares, Inc. stock logo
CBSH
Commerce Bancshares
David W Kemper (Director)Sell20,000$1,020,000.00 1,181,17212/5/2023
Compass Diversified stock logo
CODI
Compass Diversified
Anholt Investments Ltd. (Major Shareholder)Sell6,768$161,416.80 138,40112/1/2023
Compass Diversified stock logo
CODI
Compass Diversified
Anholt Investments Ltd. (Major Shareholder)Sell2,592$63,011.52 138,37912/4/2023
CONMED Co. stock logo
CNMD
CONMED
Stanley W Peters III (Insider)Sell2,300$252,839.00 6312/4/2023
Corcept Therapeutics Incorporated stock logo
CORT
Corcept Therapeutics
Gary Charles Robb (Insider)Sell1,381$36,278.87 27,60212/5/2023
Coursera, Inc. stock logo
COUR
Coursera
Jeffrey Nacey Maggioncalda (CEO)Sell155,197$3,136,531.37 2,551,93012/4/2023
Coursera, Inc. stock logo
COUR
Coursera
Kenneth R Hahn (CFO)Sell24,951$525,468.06 552,71512/6/2023
Coursera, Inc. stock logo
COUR
Coursera
Kenneth R Hahn (CFO)Sell5,000$101,600.00 552,71512/4/2023
CRA International, Inc. stock logo
CRAI
CRA International
Paul A Maleh (CEO)Sell5,000$486,600.00 164,15812/4/2023
Crocs, Inc. stock logo
CROX
Crocs
Shannon Sisler (EVP)Sell3,099$325,395.00 31,45812/4/2023
Crocs, Inc. stock logo
CROX
Crocs
Michelle Poole (President)Sell7,121$733,463.00 73,80812/5/2023
Customers Bancorp, Inc. stock logo
CUBI
Customers Bancorp
Glenn Hedde (Insider)Sell1,335$64,734.15 70,88612/5/2023
Customers Bancorp, Inc. stock logo
CUBI
Customers Bancorp
Jay S Sidhu (CEO)Sell10,000$485,400.00 157,29012/5/2023
Datadog, Inc. stock logo
DDOG
Datadog
Sean Michael Walters (CRO)Sell6,523$761,755.94 169,69912/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Kerry Acocella (General Counsel)Sell1,466$171,199.48 67,03312/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Adam Blitzer (COO)Sell8,487$991,111.86 181,03712/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Alexis Le-Quoc (CTO)Sell13,783$1,609,578.74 247,32812/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Olivier Pomel (CEO)Sell104,346$12,235,611.96 299,07512/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Madre Armelle De (Insider)Sell4,027$470,273.06 88,72012/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
David M Obstler (CFO)Sell14,608$1,705,922.24 246,00912/4/2023
Datadog, Inc. stock logo
DDOG
Datadog
Amit Agarwal (President)Sell11,037$1,288,900.86 247,07112/4/2023
Dover Co. stock logo
DOV
Dover
Brad M Cerepak (CFO)Sell14,000$1,988,000.00 35,93812/5/2023
DraftKings Inc. stock logo
DKNG
DraftKings
Paul Liberman (Insider)Sell246,808$8,991,215.44 441,61812/5/2023
Dynatrace, Inc. stock logo
DT
Dynatrace
Rick M Mcconnell (CEO)Sell25,000$1,371,250.00 530,11512/4/2023
Dynatrace, Inc. stock logo
DT
Dynatrace
Rick M Mcconnell (CEO)Sell14,018$765,803.34 516,09712/6/2023
Dynatrace, Inc. stock logo
DT
Dynatrace
Matthias Dollentz-Scharer (Insider)Sell2,074$113,302.62 74,72112/6/2023
Dynatrace, Inc. stock logo
DT
Dynatrace
Bernd Greifeneder (SVP)Sell4,715$257,580.45 996,91612/6/2023
Edwards Lifesciences Co. stock logo
EW
Edwards Lifesciences
Daveen Chopra (VP)Sell3,500$245,000.00 23,95012/6/2023
Emeren Group Ltd stock logo
SOL
Emeren Group
Shah Capital Management (Chairman)Buy147,121$360,446.45 18,043,10812/5/2023
Enanta Pharmaceuticals, Inc. stock logo
ENTA
Enanta Pharmaceuticals
Jay R Luly (CEO)Sell7,230$69,624.90 806,79312/5/2023
Erasca, Inc. stock logo
ERAS
Erasca
Jonathan E Lim (CEO)Buy721,850$1,219,926.50 12,899,36012/5/2023
EverCommerce Inc. stock logo
EVCM
EverCommerce
Sarah Michelle Jordan (CMO)Sell21,094$197,439.84 174,58712/5/2023
EverCommerce Inc. stock logo
EVCM
EverCommerce
Matthew David Feierstein (President)Sell6,664$62,441.68 2,279,56812/5/2023
EverCommerce Inc. stock logo
EVCM
EverCommerce
Marc Christopher Thompson (CFO)Sell2,765$26,765.20 1,104,11612/4/2023
EverCommerce Inc. stock logo
EVCM
EverCommerce
Eric Richard Remer (CEO)Sell5,669$54,875.92 1,825,20812/4/2023
Evolent Health, Inc. stock logo
EVH
Evolent Health
Seth Blackley (CEO)Sell141,000$3,742,140.00 637,64512/5/2023
EyePoint Pharmaceuticals, Inc. stock logo
EYPT
EyePoint Pharmaceuticals
Michael Craig Pine (Insider)Sell45,000$990,000.00 5,34312/4/2023
EyePoint Pharmaceuticals, Inc. stock logo
EYPT
EyePoint Pharmaceuticals
Cormorant Asset Management, Lp (Major Shareholder)Buy1,919,057$41,873,823.74 5,450,00012/4/2023
F5, Inc. stock logo
FFIV
F5
Chad Michael Whalen (EVP)Sell1,398$239,127.90 21,92712/4/2023
Fastly, Inc. stock logo
FSLY
Fastly
Artur Bergman (Insider)Sell17,500$314,825.00 6,281,24412/4/2023
FIGS, Inc. stock logo
FIGS
FIGS
Daniella Turenshine (CFO)Sell10,933$80,794.87 441,62312/4/2023
FIGS, Inc. stock logo
FIGS
FIGS
Daniella Turenshine (CFO)Sell7,601$53,207.00 434,02212/6/2023
First Bancorp stock logo
FBNC
First Bancorp
J Randolph Potter (Director)Sell1,221$40,012.17 1,81212/4/2023
Forge Global Holdings, Inc. stock logo
FRGE
Forge Global
Kelly Rodriques (CEO)Sell50,000$157,500.00 10,488,42012/4/2023
Fortinet, Inc. stock logo
FTNT
Fortinet
William H Neukom (Director)Buy664$34,939.68 293,04112/6/2023
Fulgent Genetics, Inc. stock logo
FLGT
Fulgent Genetics
Paul Kim (CFO)Sell1,437$39,618.09 200,46012/4/2023
Fulgent Genetics, Inc. stock logo
FLGT
Fulgent Genetics
Jian Xie (COO)Sell1,779$49,047.03 385,12412/4/2023
Ginkgo Bioworks Holdings, Inc. stock logo
DNA
Ginkgo Bioworks
Mark E Dmytruk (Insider)Sell42,402$58,938.78 676,84412/4/2023
GoDaddy Inc. stock logo
GDDY
GoDaddy
Nick Daddario (CAO)Sell342$34,962.66 17,85412/4/2023
GoDaddy Inc. stock logo
GDDY
GoDaddy
Amanpal Singh Bhutani (CEO)Sell3,164$323,455.72 261,29812/4/2023
GoDaddy Inc. stock logo
GDDY
GoDaddy
Mark Mccaffrey (CFO)Sell812$83,010.76 77,66312/4/2023
Hims & Hers Health, Inc. stock logo
HIMS
Hims & Hers Health
Melissa Baird (COO)Sell9,133$80,461.73 400,84012/4/2023
Hims & Hers Health, Inc. stock logo
HIMS
Hims & Hers Health
Melissa Baird (COO)Sell9,133$82,379.66 382,57412/6/2023
Howard Hughes Holdings Inc. stock logo
HHH
Howard Hughes
Pershing Square Capital Manage (Director)Buy3,251$243,564.92 18,838,55412/4/2023
Howard Hughes Holdings Inc. stock logo
HHH
Howard Hughes
Pershing Square Capital Manage (Director)Buy3,485$260,887.10 18,842,03912/6/2023
IDEXX Laboratories, Inc. stock logo
IDXX
IDEXX Laboratories
Jonathan Jay Mazelsky (CEO)Sell7,128$3,657,020.40 79,23312/4/2023
Immersion Co. stock logo
IMMR
Immersion
Toro 18 Holdings Llc (Major Shareholder)Buy9,579$73,375.14 1,518,48612/4/2023
Immersion Co. stock logo
IMMR
Immersion
Toro 18 Holdings Llc (Major Shareholder)Buy11,281$85,735.60 1,544,14712/6/2023
Intercontinental Exchange, Inc. stock logo
ICE
Intercontinental Exchange
Benjamin Jackson (President)Sell10,100$1,159,278.00 125,18412/4/2023
Intercontinental Exchange, Inc. stock logo
ICE
Intercontinental Exchange
Christopher Scott Edmonds (Insider)Sell2,030$233,450.00 12,79912/4/2023
Iron Mountain Incorporated stock logo
IRM
Iron Mountain
Deborah Marson (EVP)Sell2,000$131,880.00 52,02612/5/2023
J.B. Hunt Transport Services, Inc. stock logo
JBHT
J.B. Hunt Transport Services
Shelley Simpson (President)Sell5,350$1,008,475.00 82,96412/5/2023
Jacobs Solutions Inc. stock logo
J
Jacobs Solutions
Ralph E Eberhart (Director)Sell3,500$454,510.00 26,75412/4/2023
Jazz Pharmaceuticals plc stock logo
JAZZ
Jazz Pharmaceuticals
Mark Douglas Smith (Director)Sell417$49,735.59 6,88812/4/2023
JFrog Ltd. stock logo
FROG
JFrog
Tali Notman (CRO)Sell4,000$112,080.00 559,16212/4/2023
JFrog Ltd. stock logo
FROG
JFrog
Tali Notman (CRO)Sell7,407$214,803.00 551,75512/6/2023
JFrog Ltd. stock logo
FROG
JFrog
Ben Haim Shlomi (CEO)Sell5,433$152,232.66 5,268,23012/4/2023
JFrog Ltd. stock logo
FROG
JFrog
Yakov (Jacob) Shulman (CFO)Sell3,833$107,400.66 503,54012/4/2023
Juniper Networks, Inc. stock logo
JNPR
Juniper Networks
Rami Rahim (CEO)Sell5,556$159,846.12 873,85412/4/2023
Juniper Networks, Inc. stock logo
JNPR
Juniper Networks
Rami Rahim (CEO)Sell5,556$160,623.96 862,74212/6/2023
Kratos Defense & Security Solutions, Inc. stock logo
KTOS
Kratos Defense & Security Solutions
Thomas E Iv Mills (Insider)Sell16,091$321,820.00 1,57412/4/2023
Kratos Defense & Security Solutions, Inc. stock logo
KTOS
Kratos Defense & Security Solutions
Deanna H Lund (CFO)Sell6,000$120,000.00 159,26012/4/2023
Madrigal Pharmaceuticals, Inc. stock logo
MDGL
Madrigal Pharmaceuticals
Brian Joseph Lynch (SVP)Sell1,800$393,966.00 15,00112/4/2023
Meta Platforms, Inc. stock logo
META
Meta Platforms
Mark Zuckerberg (CEO)Sell28,009$8,909,382.8112/5/2023
Meta Platforms, Inc. stock logo
META
Meta Platforms
Mark Zuckerberg (CEO)Sell28,009$8,909,382.8112/5/2023
MGP Ingredients, Inc. stock logo
MGPI
MGP Ingredients
David Colo (CEO)Buy1,000$87,700.00 83,78212/6/2023
Mirum Pharmaceuticals, Inc. stock logo
MIRM
Mirum Pharmaceuticals
Jolanda Howe (SVP)Sell2,500$81,000.0012/5/2023
National Research Co. stock logo
NRC
National Research
Amandla Mk Trust (Major Shareholder)Sell952$39,603.20 4,240,78212/6/2023
Payoneer Global Inc. stock logo
PAYO
Payoneer Global
Scott H Galit (Director)Sell14,073$71,209.38 2,741,42912/5/2023
PCB Bancorp stock logo
PCB
PCB Bancorp
Sang Young Lee (Director)Buy8,000$129,280.00 1,443,96912/6/2023
Peoples Bancorp of North Carolina, Inc. stock logo
PEBK
Peoples Bancorp of North Carolina
James S Abernethy (Director)Sell2,000$54,240.00 86,70612/4/2023
PubMatic, Inc. stock logo
PUBM
PubMatic
Rajeev K Goel (CEO)Sell7,500$128,550.00 9,00012/4/2023
Pulse Biosciences, Inc. stock logo
PLSE
Pulse Biosciences
Robert W Duggan (Director)Buy27,000$280,260.00 285,54412/4/2023
Qualys, Inc. stock logo
QLYS
Qualys
Joo Mi Kim (CFO)Sell629$116,327.26 103,51212/5/2023
RB Global, Inc. stock logo
RBA
RB Global
James J Jeter (CRO)Sell3,750$243,150.00 23,14012/4/2023
RB Global, Inc. stock logo
RBA
RB Global
Darren Jeffrey Watt (Insider)Sell1,094$72,138.36 14,88012/4/2023
SentinelOne, Inc. stock logo
S
SentinelOne
Ric Smith (Insider)Sell15,417$351,507.60 473,10212/6/2023
SentinelOne, Inc. stock logo
S
SentinelOne
Ric Smith (Insider)Sell121,087$2,416,896.52 488,51912/4/2023
SES AI Co. stock logo
SES
SES AI
Hong Gan (Insider)Sell25,000$57,000.00 451,27312/5/2023
Solid Power, Inc. stock logo
SLDP
Solid Power
Joshua Buettner-Garrett (CTO)Sell187,500$275,625.00 206,43312/5/2023
Sonder Holdings Inc. stock logo
SOND
Sonder
Adam Bowen (CAO)Buy10,000$28,900.00 30,00012/6/2023
Squarespace, Inc. stock logo
SQSP
Squarespace
Anthony Casalena (CEO)Sell45,029$1,285,577.95 3,936,89412/4/2023
Star Equity Holdings, Inc. stock logo
STRR
Star Equity
Equity Fund Lp Star (Major Shareholder)Buy23,630$7,797.90 1,645,40912/4/2023
SuRo Capital Corp. stock logo
SSSS
SuRo Capital
Mark D Klein (CEO)Buy14,815$60,889.65 1,071,49612/6/2023
Symbotic Inc. stock logo
SYM
Symbotic
William M Boyd III (Insider)Sell44,183$2,471,155.19 57,01012/4/2023
Symbotic Inc. stock logo
SYM
Symbotic
William M Boyd III (Insider)Sell13,518$739,569.78 1,19312/6/2023
TFS Financial Co. stock logo
TFSL
TFS Financial
Meredith S Weil (COO)Sell15,883$210,926.24 99,56712/4/2023
The Simply Good Foods Company stock logo
SMPL
Simply Good Foods
Brian K Ratzan (Director)Sell61,284$2,459,939.76 2,314,78612/4/2023
The Simply Good Foods Company stock logo
SMPL
Simply Good Foods
Brian K Ratzan (Director)Sell51,512$2,070,782.40 2,234,50812/6/2023
Tyler Technologies, Inc. stock logo
TYL
Tyler Technologies
John S Marr Jr (Chairman)Sell6,500$2,658,890.00 51,38812/5/2023
Ultra Clean Holdings, Inc. stock logo
UCTT
Ultra Clean
Paul Yoonku Cho (General Counsel)Sell4,689$133,073.82 15,14712/4/2023
Universal Electronics Inc. stock logo
UEIC
Universal Electronics
Toro 18 Holdings Llc (Major Shareholder)Buy9,579$73,375.14 1,518,48612/4/2023
Universal Electronics Inc. stock logo
UEIC
Universal Electronics
Toro 18 Holdings Llc (Major Shareholder)Buy11,281$85,735.60 1,544,14712/6/2023
Upstart Holdings, Inc. stock logo
UPST
Upstart
Sanjay Datta (CFO)Sell1,000$31,510.00 364,09012/4/2023
Vacasa, Inc. stock logo
VCSA
Vacasa
Mossytree Inc. (Major Shareholder)Sell5,000$40,500.00 58,00612/4/2023
Vacasa, Inc. stock logo
VCSA
Vacasa
Mossytree Inc. (Major Shareholder)Sell5,000$39,050.00 48,00612/6/2023
VeriSign, Inc. stock logo
VRSN
VeriSign
Thomas C Indelicarto (EVP)Sell613$133,965.02 37,26812/5/2023
Vertex, Inc. stock logo
VERX
Vertex
Item Second Irr. Trust Fbo Jac (Insider)Sell21,696$638,079.36 1,797,13412/6/2023
Vital Farms, Inc. stock logo
VITL
Vital Farms
Jason Dale (COO)Sell40,000$565,600.00 48,45512/4/2023
W.W. Grainger, Inc. stock logo
GWW
W.W. Grainger
Laurie R Thomson (VP)Sell250$200,375.00 91112/4/2023
Weyco Group, Inc. stock logo
WEYS
Weyco Group
Damian Walton (Insider)Sell2,350$65,823.50 7,67511/22/2023
Zillow Group, Inc. stock logo
ZG
Zillow Group
Jennifer Rock (CAO)Sell2,222$100,412.18 63,73612/6/2023
Zillow Group, Inc. stock logo
Z
Zillow Group
Jennifer Rock (CAO)Sell2,222$100,412.18 63,73612/6/2023
Zoom Video Communications, Inc. stock logo
ZM
Zoom Video Communications
Santiago Subotovsky (Director)Sell2,067$140,080.59 161,76012/4/2023
Zoom Video Communications, Inc. stock logo
ZM
Zoom Video Communications
Eric S. Yuan (CEO)Sell11,207$760,731.1612/4/2023
Zscaler, Inc. stock logo
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Insider Trading - What You Need to Know

In a digital world, insider trading is becoming easier, and harder, to define


According to the Securities & Exchange Commission (SEC) insider trading “refers generally to buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security.”

That definition would seem to imply that insider trading violations only occur when someone acts on the information. However, the SEC also says that insider trading violations also include the act of “tipping” inside information.

This is because for something to constitute insider trading individuals must have access to information that the general public does not have the ability to access. And, the individuals then act on that information to inform trading usually of specific equities.

Continue reading this article to help you understand the topic of insider trading. We’ll define insider trading and look at important specifics such as what makes someone an insider, why insider trading is harmful to markets and to the point we just made under what conditions insider trading can be legal.

There are three conditions that have to be met for an act of insider trading to be illegal:

  1. Information must be passed along by an insider.
  2. The individual(s) receiving the information must act upon (traded) that information.
  3. The trading activity must take place before the tipped information is available to the general public.

That last point is a key one to understand. In many cases, the information used for a trade becomes public knowledge. The point is that if an individual were to find out something days or weeks before the general public, they could prepare a trade to maximize their own gain.

Two recent high-profile cases illustrate the relationship between insiders and insider trading. The first involved American retail businesswoman, writer, and television personality Martha Stewart. In this case, Stewart received a tip from her broker who worked at Merrill Lynch. Stewart did not work for the company in question nor did she work for Merrill Lynch. However, she was an existing shareholder of the stock in question.

Stewart was convicted of insider trading based on evidence that she had made trades before the information that was tipped to her became public. She served five months in prison and two years of probation including five months under house arrest.

The other case involves Mychal Kendricks a professional football player. Kendricks entered and exited trades based on information he received from an acquaintance who was a broker with Goldman Sachs. This case was a bit greyer because Kendricks was not a client of the broker. Nevertheless, he was given access to confidential information that could materially affect the price of the securities he traded prior to that information being released to the public. Kendricks served one day in prison, was sentenced to three years of probation and 300 hours of community service.

Once again, let’s look at what the SEC has to say about this. The commission says the definition of who is an insider “can include officers, directors, major stockholders and employees of an entity whose securities are publicly traded.” This is a broad definition that is intended to presume that insiders should put the company’s interest ahead of their own.

The SEC policy states that, in general, “an insider must not trade for personal gain in the securities of that entity if that person possesses material, nonpublic information about the entity.” They go on to say that individuals “must not disclose that information to family, friends, business or social acquaintances, employees or independent contractors of the entity.” However, an insider may make trades or discuss the information after it has been made public.

As it relates to insider trading, the definition of “insider” expands even more. In fact, any individual who buys or sells shares of a security based on inside information can be guilty of insider trading.

The first reason that insider trading is harmful relates to the insider’s fiduciary duty. A common question that gets asked is why shouldn’t individuals benefit from having insider information? The answer is they are supposed to put the company’s interests ahead of their own. This includes brokers and analysts who have access to this information. When that information is traded on, they are allowing that information to be used to benefit others ahead of the company.

This idea of benefiting some to the exclusion of others leads to the second fundamental harm of insider trading. It violates the principle of transparency. When the market is functioning properly both retail and institutional investors have access to the same information. At times, you already hear retail traders claiming the market is a rigged game. If insider trading was allowed to proceed without any consequences, retail investors would lose even more confidence in the market.

In reality, it’s not but it has to do with intent of the person giving the information. In the case Dirks v. SEC, the Supreme Court determined, “the mere disclosure of material, nonpublic information, by itself, does not necessarily constitute a breach of an insider’s fiduciary duties.”

What does that mean in plain terms? If someone overhears a conversation in which insider information is disclosed, they can act on the information if they were not aware that it was confidential. This was the premise behind the ruling in the Dirks v. SEC case.

At that time, Barry Switzer was the head football coach at the University of Oklahoma. Switzer overheard a conversation between the former CEO of Texas International and his spouse while at a track meet in Texas. The former CEO had no idea that Switzer heard the information and Switzer had no idea the information was confidential. The case went to trial and the Supreme Court ruled that the CEO did not breach his fiduciary duties. However, this was only because the CEO was engaged in what he had reason to believe was a private conversation. If he was relaying that information to Switzer himself, even if he believed the information wouldn’t be acted on, it would have met the standard for insider trading.

The key definition of insider trading stems from the word trading, which constitutes an action. Here’s a hypothetical example.  Jane is an executive at XYZ Company. She knows that the company is going to acquire another company and shares that information with family and friends before it becomes public information.

In and of itself, that does not constitute insider trading. It does, however, become insider trading if anyone who is privy to that information uses it to make enter and/or exit trades prior to the information going public.

The same logic goes for those that receive the information. If they don’t act on it, then it’s just information. If they make trades based on it, then it constitutes insider trading.

However, this serves to clarify the importance of the insider not disclosing the information. They may trust their family members and close friends to not trade the news. However, once the information is out, they have less control of who else may hear about it and act on it.

With every example we’ve discussed, how can insider trading ever be legal? The answer is only under very restrictive conditions. First, the trade must be reported to the SEC via a Form 4 within two business days of when the trade occurred. This will make the trade part of the public record. Additionally, the trader must list all the company’s directors and officers along with any share interest they have in a Form 14a filing.

Although insider selling frequently draws the attention of retail investors, the reality is that company insiders sell company stock. And they can do so for a lot of reasons, many being personal.

Information about insider trades is available on many financial websites. However, the best place to look is the SEC’s EDGAR (Electronic Data Gathering, Analysis and Retrieval) database. Furthermore, SEC rules prevent insiders from trading company stock within any six-month period.

With that in mind, it’s more telling when insiders buy their company’s stock. To do so under those conditions, an investor could not be blamed for presuming the company’s outlook was good.

Insider trading seems simple enough to understand, and yet it’s one of the more misunderstood terms in the financial world. It’s not as abstract as “you know when you see it” but whether something constitutes insider trading really comes down to access and intent.

The everyday retail trader or investor has access to more information than ever before. And there are professional traders and analysts who publish content to keep fueling this news cycle. In a certain way, that makes defining insider trading a little easier. Simply put, there’s a lot of information, including speculative rumors, that is found in the public domain.

In the end, there are two basic questions that have to be asked. One is the information idle speculation or is it credible information from someone with access? Second, is the information in the public domain?

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.

However, legal insider trading has always existed. And if properly disclosed, it can be a benefit to retail and institutional investors as a supplement to fundamental or technical analysis.

 

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