QQQ   281.68 (-2.07%)
AAPL   142.91 (-2.54%)
MSFT   245.12 (-2.03%)
META   114.12 (-6.79%)
GOOGL   96.98 (-2.51%)
AMZN   88.25 (-3.03%)
TSLA   179.82 (-1.44%)
NVDA   159.87 (-3.75%)
NIO   13.24 (+3.44%)
BABA   91.45 (+1.03%)
AMD   70.27 (-4.55%)
T   19.17 (+2.24%)
MU   53.68 (-0.67%)
CGC   3.61 (-16.44%)
F   13.28 (-0.75%)
GE   85.28 (+0.73%)
DIS   92.29 (-3.79%)
AMC   6.75 (-9.40%)
PYPL   72.23 (-1.89%)
PFE   49.71 (-2.01%)
NFLX   305.56 (-2.25%)
QQQ   281.68 (-2.07%)
AAPL   142.91 (-2.54%)
MSFT   245.12 (-2.03%)
META   114.12 (-6.79%)
GOOGL   96.98 (-2.51%)
AMZN   88.25 (-3.03%)
TSLA   179.82 (-1.44%)
NVDA   159.87 (-3.75%)
NIO   13.24 (+3.44%)
BABA   91.45 (+1.03%)
AMD   70.27 (-4.55%)
T   19.17 (+2.24%)
MU   53.68 (-0.67%)
CGC   3.61 (-16.44%)
F   13.28 (-0.75%)
GE   85.28 (+0.73%)
DIS   92.29 (-3.79%)
AMC   6.75 (-9.40%)
PYPL   72.23 (-1.89%)
PFE   49.71 (-2.01%)
NFLX   305.56 (-2.25%)
QQQ   281.68 (-2.07%)
AAPL   142.91 (-2.54%)
MSFT   245.12 (-2.03%)
META   114.12 (-6.79%)
GOOGL   96.98 (-2.51%)
AMZN   88.25 (-3.03%)
TSLA   179.82 (-1.44%)
NVDA   159.87 (-3.75%)
NIO   13.24 (+3.44%)
BABA   91.45 (+1.03%)
AMD   70.27 (-4.55%)
T   19.17 (+2.24%)
MU   53.68 (-0.67%)
CGC   3.61 (-16.44%)
F   13.28 (-0.75%)
GE   85.28 (+0.73%)
DIS   92.29 (-3.79%)
AMC   6.75 (-9.40%)
PYPL   72.23 (-1.89%)
PFE   49.71 (-2.01%)
NFLX   305.56 (-2.25%)
QQQ   281.68 (-2.07%)
AAPL   142.91 (-2.54%)
MSFT   245.12 (-2.03%)
META   114.12 (-6.79%)
GOOGL   96.98 (-2.51%)
AMZN   88.25 (-3.03%)
TSLA   179.82 (-1.44%)
NVDA   159.87 (-3.75%)
NIO   13.24 (+3.44%)
BABA   91.45 (+1.03%)
AMD   70.27 (-4.55%)
T   19.17 (+2.24%)
MU   53.68 (-0.67%)
CGC   3.61 (-16.44%)
F   13.28 (-0.75%)
GE   85.28 (+0.73%)
DIS   92.29 (-3.79%)
AMC   6.75 (-9.40%)
PYPL   72.23 (-1.89%)
PFE   49.71 (-2.01%)
NFLX   305.56 (-2.25%)

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 community opinion, dividend strength, institutional and insider ownership, earnings and valuation, and analysts forecasts.
Available with a MarketBeat All Access Subscription
MarketRank™Upgrade to All Access to use the All Ranks Filter
Media sentiment refers to the percentage of positive news stories versus negative news stories a company has received in the past week.
Available with a MarketBeat All Access Subscription
Media SentimentUpgrade to All Access to use the All Sentiments Filter
Analyst consensus is the average investment recommendation among Wall Street research analysts.
Available with a MarketBeat All Access Subscription
Analyst ConsensusUpgrade to All Access to use the All Ratings Filter
CompanyInsider NameBuy/SellShares Bought/SoldTotal TransactionShares Held After TransactionTransaction DateDetails
23andMe Holding Co. stock logo
ME
23andMe Holding Co.
Kathy L Hibbs (Insider)Sell26,25985,341.75 235,82912/5/2022
Amcor plc stock logo
AMCR
Amcor plc
Ian Wilson (EVP)Sell100,000$1,238,000.00 131,61012/2/2022
Antero Resources Co. stock logo
AR
Antero Resources Co.
W Howard Keenan Jr (Director)Sell220,245$6,862,834.20 4,779,75512/6/2022
Archer Aviation Inc. stock logo
ACHR
Archer Aviation Inc.
Brett Adcock (Major Shareholder)Sell120,000$301,200.0012/2/2022
Archer Aviation Inc. stock logo
ACHR
Archer Aviation Inc.
Brett Adcock (Major Shareholder)Sell49,584$119,497.4412/5/2022
Atlassian Co. stock logo
TEAM
Atlassian Co.
Scott Farquhar (CEO)Sell8,614$1,168,747.52 155,05212/5/2022
Bankwell Financial Group, Inc. stock logo
BWFG
Bankwell Financial Group, Inc.
Laura Waitz (COO)Sell1,253$37,615.06 50012/2/2022
BRT Apartments Corp. stock logo
BRT
BRT Apartments Corp.
Matthew J Gould (SVP)Buy2,434$49,483.22 3,170,42712/2/2022
BRT Apartments Corp. stock logo
BRT
BRT Apartments Corp.
Matthew J Gould (SVP)Buy11,876$235,976.12 3,182,30312/5/2022
Cerence Inc. stock logo
CRNC
Cerence Inc.
Thomas L Beaudoin (CFO)Buy5,000$94,000.00 213,17312/5/2022
Ciena Co. stock logo
CIEN
Ciena Co.
James E Moylan Jr (CFO)Sell2,000$89,080.00 214,49212/5/2022
Cimpress plc stock logo
CMPR
Cimpress plc
Robert S Keane (CEO)Sell17,734$550,286.02 77,99412/2/2022
Cimpress plc stock logo
CMPR
Cimpress plc
Robert S Keane (CEO)Sell17,732$528,058.96 69,12812/5/2022
Cloudflare, Inc. stock logo
NET
Cloudflare, Inc.
Thomas J Seifert (CFO)Sell20,000$890,600.00 86,43312/5/2022
ContextLogic Inc. stock logo
WISH
ContextLogic Inc.
Tarun Kumar Jain (Insider)Sell88,000$60,720.00 201,76412/2/2022
Datadog, Inc. stock logo
DDOG
Datadog, Inc.
Sean Michael Walters (CRO)Sell2,873$214,411.99 149,25212/2/2022
Datadog, Inc. stock logo
DDOG
Datadog, Inc.
David M Obstler (CFO)Sell9,659$720,851.17 190,78912/2/2022
Datadog, Inc. stock logo
DDOG
Datadog, Inc.
Alexis Le-Quoc (Insider)Sell71,364$5,068,984.92 179,37012/5/2022
Datadog, Inc. stock logo
DDOG
Datadog, Inc.
Olivier Pomel (CEO)Sell13,781$1,028,476.03 242,99112/2/2022
Datadog, Inc. stock logo
DDOG
Datadog, Inc.
Adam Blitzer (COO)Sell7,139$532,783.57 166,07112/2/2022
Dime Community Bancshares, Inc. stock logo
DCOM
Dime Community Bancshares, Inc.
Christopher J Porzelt (Insider)Sell2,000$67,000.00 13,71611/30/2022
Donegal Group Inc. stock logo
DGICA
Donegal Group Inc.
Jon Marshall Mahan (Director)Sell3,093$45,621.75 7,98812/6/2022
Entrada Therapeutics, Inc. stock logo
TRDA
Entrada Therapeutics, Inc.
Kory James Wentworth (CFO)Sell2,910$52,962.00 16,50912/2/2022
ERNA
Eterna Therapeutics Inc.
Nicholas Jason Singer (Director)Buy283,286$929,178.08 266,21412/2/2022
Fisker Inc. stock logo
FSR
Fisker Inc.
Henrik Fisker (CEO)Buy33,700$250,054.00 629,21812/5/2022
Five9, Inc. stock logo
FIVN
Five9, Inc.
Leena Mansharamani (CAO)Sell408$26,732.16 14,34412/2/2022
Five9, Inc. stock logo
FIVN
Five9, Inc.
Leena Mansharamani (CAO)Sell848$55,518.56 13,49612/5/2022
Formula One Group stock logo
FWONA
Formula One Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
Formula One Group stock logo
FWONK
Formula One Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
Generac Holdings Inc. stock logo
GNRC
Generac Holdings Inc.
Robert D Dixon (Director)Buy2,000$194,540.00 8,89512/5/2022
GoDaddy Inc. stock logo
GDDY
GoDaddy Inc.
Amanpal Singh Bhutani (CEO)Sell1,511$118,673.94 215,53912/2/2022
Green Plains Partners LP stock logo
GPP
Green Plains Partners LP
Todd A Becker (CEO)Sell4,000$49,600.00 11,05612/2/2022
Green Plains Partners LP stock logo
GPP
Green Plains Partners LP
Todd A Becker (CEO)Sell5,000$61,000.00 6,05612/5/2022
Guaranty Bancshares, Inc. stock logo
GNTY
Guaranty Bancshares, Inc.
Richard W Baker (Director)Buy21,536$741,053.76 600,22512/5/2022
Halliburton stock logo
HAL
Halliburton
Van H Beckwith (EVP)Sell11,044$436,238.00 249,29112/5/2022
Hewlett Packard Enterprise stock logo
HPE
Hewlett Packard Enterprise
Phil Mottram (EVP)Sell27,046$448,422.68 8,00012/2/2022
Hewlett Packard Enterprise stock logo
HPE
Hewlett Packard Enterprise
Neil B Macdonald (EVP)Sell9,532$153,941.80 9,36012/5/2022
HP Inc. stock logo
HPQ
HP Inc.
Marie Myers (CFO)Sell6,000$175,920.00 7,50012/5/2022
IDEXX Laboratories, Inc. stock logo
IDXX
IDEXX Laboratories, Inc.
M Anne Szostak (Director)Sell740$317,127.00 1,26012/2/2022
Ingevity Co. stock logo
NGVT
Ingevity Co.
Erik Spencer Ripple (Insider)Sell856$66,631.04 10,10612/2/2022
Inter Parfums, Inc. stock logo
IPAR
Inter Parfums, Inc.
Russell Greenberg (CFO)Sell10,000$995,200.00 7,50012/2/2022
Inter Parfums, Inc. stock logo
IPAR
Inter Parfums, Inc.
Russell Greenberg (CFO)Sell917$91,700.00 7,50012/6/2022
International Money Express, Inc. stock logo
IMXI
International Money Express, Inc.
John Rincon (Director)Sell20,500$451,820.00 26,44512/2/2022
International Money Express, Inc. stock logo
IMXI
International Money Express, Inc.
John Rincon (Director)Sell26,445$559,311.75 32,04512/5/2022
Jack in the Box Inc. stock logo
JACK
Jack in the Box Inc.
Darin S Harris (CEO)Sell1,258$86,952.96 35,52012/6/2022
L3Harris Technologies, Inc. stock logo
LHX
L3Harris Technologies, Inc.
Dana A Mehnert (Insider)Sell1,985$451,091.25 23,83012/5/2022
MaxCyte, Inc. stock logo
MXCT
MaxCyte, Inc.
Thomas M. Ross (EVP)Sell15,000$90,300.0012/2/2022
MaxCyte, Inc. stock logo
MXCT
MaxCyte, Inc.
Thomas M. Ross (EVP)Sell14,133$79,003.4712/5/2022
New York Community Bancorp, Inc. stock logo
NYCB
New York Community Bancorp, Inc.
Marshall Lux (Director)Buy6,000$51,180.00 12,00012/6/2022
NGL Energy Partners LP stock logo
NGL
NGL Energy Partners LP
H Michael Krimbill (CEO)Buy100,000$115,000.00 2,888,61512/5/2022
Nikola Co. stock logo
NKLA
Nikola Co.
Mark A Russell (Director)Sell75,000$204,000.00 2,812,34612/5/2022
Patterson Companies, Inc. stock logo
PDCO
Patterson Companies, Inc.
Kevin Michael Barry (CFO)Sell9,443$274,791.30 6,44212/5/2022
PDC Energy, Inc. stock logo
PDCE
PDC Energy, Inc.
Pamela R Butcher (Director)Buy1,000$68,280.00 4,78712/5/2022
Peapack-Gladstone Financial Co. stock logo
PGC
Peapack-Gladstone Financial Co.
Stuart M Vorcheimer (EVP)Sell750$29,707.50 7,24012/5/2022
Rani Therapeutics Holdings, Inc. stock logo
RANI
Rani Therapeutics Holdings, Inc.
South Cone Investments Limited (Major Shareholder)Buy9,819$80,123.04 6,584,29312/2/2022
Rani Therapeutics Holdings, Inc. stock logo
RANI
Rani Therapeutics Holdings, Inc.
South Cone Investments Limited (Major Shareholder)Buy12,195$97,194.15 6,596,48812/5/2022
Raytheon Technologies Co. stock logo
RTX
Raytheon Technologies Co.
Gregory Hayes (CEO)Sell4,260$422,421.60 453,68512/2/2022
ResMed Inc. stock logo
RMD
ResMed Inc.
David Pendarvis (Insider)Sell1,500$344,715.00 98,67212/5/2022
Shapeways Holdings, Inc. stock logo
SHPW
Shapeways Holdings, Inc.
Greg Kress (CEO)Buy50,000$32,000.00 411,14412/5/2022
Shoals Technologies Group, Inc. stock logo
SHLS
Shoals Technologies Group, Inc.
Dean Solon (Major Shareholder)Sell564,668$12,123,421.96 62,50012/6/2022
SPS Commerce, Inc. stock logo
SPSC
SPS Commerce, Inc.
Kimberly K Nelson (CFO)Sell2,526$369,174.90 126,38812/2/2022
Starry Group Holdings, Inc. stock logo
STRY
Starry Group Holdings, Inc.
Tiger Global Management Llc (Major Shareholder)Sell354,139$56,662.24 15,501,22112/5/2022
The Liberty Braves Group stock logo
BATRK
The Liberty Braves Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
The Liberty Braves Group stock logo
BATRA
The Liberty Braves Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
The Liberty SiriusXM Group stock logo
LSXMA
The Liberty SiriusXM Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
The Liberty SiriusXM Group stock logo
LSXMK
The Liberty SiriusXM Group
Brian J Wendling (CAO)Sell1,045$34,485.00 17,82612/2/2022
Tyler Technologies, Inc. stock logo
TYL
Tyler Technologies, Inc.
Glenn A Carter (Director)Sell400$137,396.00 1,28712/2/2022
UnitedHealth Group Incorporated stock logo
UNH
UnitedHealth Group Incorporated
Erin Mcsweeney (EVP)Sell616$329,560.00 8,46312/2/2022
USA Compression Partners LP stock logo
USAC
USA Compression Partners LP
Eric D Long (Insider)Sell3,117$58,661.94 532,31612/2/2022
USA Compression Partners LP stock logo
USAC
USA Compression Partners LP
Eric D Long (Insider)Sell17,291$317,808.58 515,02512/5/2022
USANA Health Sciences, Inc. stock logo
USNA
USANA Health Sciences, Inc.
Daniel A Macuga (Insider)Sell1,474$79,478.08 2,23412/5/2022
Ventyx Biosciences, Inc. stock logo
VTYX
Ventyx Biosciences, Inc.
John Nuss (Insider)Sell50,000$1,411,500.00 258,69612/5/2022
Ventyx Biosciences, Inc. stock logo
VTYX
Ventyx Biosciences, Inc.
Martin Auster (CFO)Sell97,647$2,832,739.47 47,64912/2/2022
Ventyx Biosciences, Inc. stock logo
VTYX
Ventyx Biosciences, Inc.
Christopher W Krueger (Insider)Sell50,000$1,450,500.00 302,69212/2/2022
Ventyx Biosciences, Inc. stock logo
VTYX
Ventyx Biosciences, Inc.
Raju Mohan (CEO)Sell276,997$8,035,682.97 1,564,81412/2/2022
Ventyx Biosciences, Inc. stock logo
VTYX
Ventyx Biosciences, Inc.
Raju Mohan (CEO)Sell23,003$654,205.32 1,541,81112/5/2022
Visa Inc. stock logo
V
Visa Inc.
Rajat Taneja (Insider)Sell25,627$5,552,602.09 232,11212/2/2022
Workday, Inc. stock logo
WDAY
Workday, Inc.
George J Still Jr (Director)Sell5,000$846,900.00 10,00012/2/2022
XPEL, Inc. stock logo
XPEL
XPEL, Inc.
Richard K Crumly (Director)Sell8,500$595,085.00 809,15612/2/2022
XPEL, Inc. stock logo
XPEL
XPEL, Inc.
Richard K Crumly (Director)Sell658$46,152.12 808,49812/5/2022
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.

 

More Insider Trading Tools from MarketBeat