Insider Trades Tracked on 9/10/2019
 

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. Learn more.

CompanyInsider
Name
Buy/SellShares
Bought/Sold
Total
Transaction
Shares Held
After Transaction
Transaction
Date
Actions
Acceleron Pharma Inc (XLRN)Ravindra Kumar (SVP)Sell3,389$153,318.3686,9869/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Acceleron Pharma Inc (XLRN)John D Quisel (EVP)Sell3,584$162,104.3259,1589/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Acceleron Pharma Inc (XLRN)Kevin F Mclaughlin (CFO)Sell8,000$362,400.0022,4529/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Acceleron Pharma Inc (XLRN)Habib J Dable (CEO)Sell5,625$254,418.7571,2279/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
ACCO Brands Co. (ACCO)Gregory J Mccormack (SVP)Sell10,872$103,827.60108,3029/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Advanced Micro Devices, Inc. (AMD)Mark E Wallace (EVP)Sell12,559$168,541.789/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Air Lease Corp (AL)Jie Chen (Director)Sell50,000$2,150,000.009/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Air Lease Corp (AL)Kishore Korde (EVP)Sell20,000$856,000.00117,4379/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Alexandria Real Estate Equities Inc (ARE)Joel S Marcus (Chairman)Sell9,750$1,489,312.50445,9629/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Alteryx Inc (AYX)Kevin Rubin (CFO)Sell13,000$1,764,750.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Amedisys Inc (AMED)Jake L Netterville (Director)Sell1,000$135,640.0072,7009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Ameresco Inc (AMRC)George P Sakellaris (CEO)Sell114,900$1,600,557.003,498,2619/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
American Software, Inc. (AMSWA)J Michael Edenfield (Director)Sell7,965$119,475.00423,6889/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
AmerisourceBergen Corp. (ABC)Steven H Collis (CEO)Sell19,905$1,729,545.45154,4849/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Antero Midstream Corp (AM)W Howard Keenan Jr (Director)Sell2,855,848$19,448,324.889/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Appian Corp (APPN)Matthew W Calkins (CEO)Sell375,000$20,887,500.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Appian Corp (APPN)Albert G.W. Biddle III (Director)Sell89,000$4,957,300.006,5739/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Arena Pharmaceuticals, Inc. (ARNA)Vincent Aurentz (VP)Sell65,000$3,296,800.0025,0009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Arena Pharmaceuticals, Inc. (ARNA)Steven W Spector (EVP)Sell31,457$1,595,499.0422,9649/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
At Home Group Inc (HOME)Philip L. Francis (Director)Buy21,125$165,620.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
At Home Group Inc (HOME)Clifford Sosin (Major Shareholder)Buy175,278$1,034,140.209/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Avnet (AVT)Philip R Gallagher (President)Sell24,184$1,062,644.9651,8789/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
BancFirst Co. (BANF)Darryl Schmidt (EVP)Sell4,000$220,200.0011,0009/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Becton Dickinson and Co (BDX)Vincent A Forlenza (CEO)Sell11,532$3,002,702.16218,6719/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Bio-Rad Laboratories, Inc. (BIO)John Hertia (EVP)Sell444$149,392.6818,2069/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Boot Barn Holdings Inc (BOOT)James Grant Conroy (CEO)Sell28,569$999,915.0039,6479/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Boston Beer Company Inc (SAM)C James Koch (Chairman)Sell14,000$5,596,920.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Burlington Stores Inc (BURL)William P Mcnamara (Director)Sell828$170,187.127,8219/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Cadence Design Systems Inc (CDNS)Surendra Babu Mandava (VP)Sell4,027$284,306.20299,7609/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
CarGurus Inc (CARG)Langley Steinert (CEO)Sell117,406$3,892,008.909/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
CarGurus Inc (CARG)Anastasios Parafestas (Director)Sell20,000$664,200.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Ciena Co. (CIEN)Judith M. Obrien (Director)Sell17,071$673,450.959/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Cigna Corp (CI)David Cordani (CEO)Buy32,509$5,044,421.539/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Citi Trends, Inc. (CTRN)Peter R Sachse (Director)Buy9,000$151,560.0013,3909/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Cloudera Inc (CLDR)Carl C Icahn (Major Shareholder)Buy439,914$2,199,570.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
CME Group Inc (CME)Sean Tully (Insider)Sell7,200$1,606,536.0019,9239/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Commscope Holding Company Inc (COMM)L William Krause (Director)Buy21,250$252,237.509/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
CONSOL Coal Resources LP (CCR)Consol Energy Inc. (Director)Buy9,803$129,007.489/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Denny's Corp (DENN)John William Dillon (SVP)Sell9,588$225,605.6470,6209/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Denny's Corp (DENN)John William Dillon (SVP)Sell7,392$171,716.1670,6209/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Designer Brands Inc (DBI)Deborah L Ferree (Chairman)Sell69,806$1,142,724.229/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Docusign Inc (DOCU)Loren Alhadeff (CRO)Sell24,000$1,335,360.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Elastic NV (ESTC)Michelangelo Volpi (Director)Sell287,688$24,568,555.209/4/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Etsy Inc (ETSY)Michael T Fisher (CTO)Sell5,194$259,700.0017,3879/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
EVO Payments Inc (EVOP)Groot Steven J De (EVP)Sell20,000$573,800.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
eXp World Holdings Inc (EXPI)Richard Stanwood Miller (Director)Sell17,500$147,525.009/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
F5 Networks, Inc. (FFIV)Alan Higginson (Director)Sell1,688$224,335.209,8409/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
FibroGen Inc (FGEN)Kalevi Kurkijarvi (Director)Sell6,000$245,700.0034,4009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Fortress Transprtn and Infr Investrs LLC (FTAI)Martin Tuchman (Director)Buy19,900$511,231.005,5009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
FS KKR Capital Corp (FSK)Michael J Hagan (Director)Buy42,100$250,495.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Gabelli Global Small Md Cp Vl Trst (GGZ)James P Conn (Director)Sell13,938$151,784.829/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Gartner Inc (IT)Anne Sutherland Fuchs (Director)Sell1,828$249,979.0027,2379/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Global Payments Inc (GPN)William I Jacobs (Director)Sell10,980$1,924,464.6040,5689/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
GMS Inc (GMS)Investors Fund V Lp Aea (Major Shareholder)Sell6,825,058$183,798,811.949/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Gossamer Bio Inc (GOSS)Fund V Gp L.P. Omega (Major Shareholder)Sell21,404$461,470.249/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Hartford Financial Services Group Inc (HIG)David C Robinson (EVP)Sell6,978$418,959.1222,0409/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Hibbett Sports, Inc. (HIBB)Ronald P Blahnik (SVP)Buy6,125$97,020.0014,7009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Horace Mann Educators Co. (HMN)Matthew P. Sharpe (EVP)Sell3,500$158,165.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Hormel Foods Corp (HRL)Jana L Haynes (VP)Sell26,506$1,130,480.902,5009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Integra Lifesciences Holdings Corp (IART)Peter J Arduini (CEO)Sell250,000$15,137,500.00433,0179/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Itron, Inc. (ITRI)Michel Cadieux (SVP)Sell34,683$2,467,001.7949,7029/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Kellogg (K)Kellogg W. K. Foundation Trust (Major Shareholder)Sell100,000$6,309,000.009/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Kirby Co. (KEX)David W Grzebinski (CEO)Sell9,069$711,009.6075,9839/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Kirby Co. (KEX)Amy D Husted (VP)Sell6,174$483,115.5020,5459/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
L3Harris (LHX)William M Brown (CEO)Sell130,000$27,887,600.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
L3Harris (LHX)Scott T Mikuen (SVP)Sell56,500$12,079,700.009/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Lululemon Athletica inc. (LULU)Dennis J Wilson (Director)Sell99,133$20,004,048.073,8529/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Lululemon Athletica inc. (LULU)Dennis J Wilson (Director)Sell46,725$9,155,296.503,8529/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Meredith Co. (MDP)Thomas H Harty (CEO)Buy12,000$420,240.0046,4559/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
National Bank Holdings Corp (NBHC)Maria F Spring (Director)Sell19,333$657,322.0050,8289/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
National Research Co. (NRC)Donald M Berwick (Director)Sell9,035$569,295.359/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
National Research Co. (NRC)Kevin R Karas (CFO)Sell2,902$182,332.669/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Neuronetics Inc (STIM)Christopher Thatcher (CEO)Sell20,000$214,800.009/4/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
NextEra Energy Inc (NEE)Joseph T Kelliher (EVP)Sell3,279$718,756.8028,2159/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Nicholas Financial, Inc. (NICK)Adam K. Peterson (Director)Buy15,101$138,929.209/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
PAR Technology Co. (PAR)John W Sammon Jr (Director)Sell5,660$131,821.402,463,5449/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Pieris Pharmaceuticals Inc (PIRS)Bvf Partners L P/Il (Major Shareholder)Sell50,000$225,000.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
PRA Health Sciences Inc (PRAH)Fund Holdings L.P. Kkr (Major Shareholder)Sell6,666,684$649,401,688.449/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Proofpoint Inc (PFPT)Bhagwat Swaroop (EVP)Sell1,200$150,072.007269/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Prudential Financial Inc (PRU)Kenneth Tanji (CFO)Buy2,500$209,600.0019,2859/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Prudential Financial Inc (PRU)Robert Falzon (EVP)Buy3,580$300,648.4064,2289/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Prudential Financial Inc (PRU)Charles F Lowrey (CEO)Buy7,500$627,600.0064,2639/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
PS Business Parks Inc (PSB)Joseph D. Russell, Jr. (Director)Sell1,800$325,224.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Purple Innovation Inc (PRPL)Coliseum Capital Management, L (Director)Buy29,979$246,427.389/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Qorvo Inc (QRVO)Gina Harrison (VP)Sell1,328$100,901.4418,6899/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Reata Pharmaceuticals Inc (RETA)Elaine Castellanos (Insider)Sell2,000$170,000.004,1389/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Reinsurance Group of America Inc (RGA)William L Hutton (EVP)Sell1,500$237,225.0016,2399/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
ResMed Inc. (RMD)Michael J Farrell (CEO)Sell6,651$913,714.38310,9759/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Retail Value Inc (RVI)Katharina Otto-Bernstein (Major Shareholder)Sell34,381$1,278,285.589/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
RingCentral Inc (RNG)Vladimir Shmunis (CEO)Sell25,000$3,431,500.00253,3339/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
RingCentral Inc (RNG)Vladimir Shmunis (CEO)Sell18,750$2,437,312.50253,3339/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
RingCentral Inc (RNG)David Sipes (COO)Sell13,957$1,921,878.90251,7469/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
RingCentral Inc (RNG)David Sipes (COO)Sell5,500$716,430.00251,7469/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
salesforce.com, inc. (CRM)Marc Benioff (CEO)Sell5,000$746,550.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Seacor Holdings, Inc. (CKH)Charles Fabrikant (CEO)Sell27,001$1,278,497.35521,8099/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Seacor Holdings, Inc. (CKH)Charles Fabrikant (CEO)Sell24,100$1,140,894.00521,8099/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Seagate Technology PLC (STX)William D. Mosley (CEO)Sell90,000$4,887,900.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Seattle Genetics, Inc. (SGEN)Clay B. Siegall (CEO)Sell28,472$1,945,491.769/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Select Medical Holdings Co. (SEM)Scott A Romberger (SVP)Sell9,344$161,277.44146,6209/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Service Co. International (SCI)Tammy R Moore (Insider)Sell7,900$370,431.0032,7639/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Shockwave Medical Inc (SWAV)Antoine Papiernik (Director)Sell650,000$22,327,500.009/4/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Smartsheet Inc (SMAR)Geoffrey T Barker (Director)Sell16,700$757,512.009/5/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Starbucks Co. (SBUX)Jill Walker (CAO)Sell2,000$191,600.0039,9999/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Starbucks Co. (SBUX)Vivek C. Varma (EVP)Sell21,128$2,025,330.089/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Starwood Property Trust, Inc. (STWD)Jeffrey F Dimodica (President)Sell30,000$712,200.00305,7659/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Starwood Property Trust, Inc. (STWD)Rina Paniry (CFO)Sell13,000$312,130.00199,9279/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Tenet Healthcare Corp (THC)Glenview Capital Management, L (Major Shareholder)Buy8,160$160,344.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Tetra Tech, Inc. (TTEK)Richard A. Lemmon (SVP)Sell3,000$249,000.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
The Coca-Cola Co (KO)Brian John Smith (COO)Sell60,000$3,292,200.00174,3029/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Trimble Inc (TRMB)Ronald Bisio (VP)Sell4,265$162,667.108,9539/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Trimble Inc (TRMB)James A Kirkland (SVP)Sell2,700$102,627.0054,0369/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
TriNet Group Inc (TNET)Martin Babinec (Director)Sell23,500$1,491,780.009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Trupanion Inc (TRUP)Darryl Rawlings (CEO)Sell4,000$95,680.001,462,4999/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
United Technologies Co. (UTX)Gregory Hayes (CEO)Sell19,542$2,605,925.70246,1119/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
United Technologies Co. (UTX)Robert J Bailey (VP)Sell831$112,259.792,0009/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
United Technologies Co. (UTX)Robert F Leduc (Insider)Sell5,025$673,651.5091,0289/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Vicor Corp (VICR)Alex Gusinov (VP)Sell5,060$159,390.0011,7159/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Waste Connections Inc (WCN)Michael W Harlan (Director)Sell2,038$186,334.3417,4259/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Whitestone REIT (WSR)James C Mastandrea (CEO)Buy10,000$126,400.001,027,2509/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Williams-Sonoma, Inc. (WSM)Alex Bellos (Insider)Sell4,820$314,505.008,1779/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Winmark Co. (WINA)Leah A Goff (VP)Sell1,675$275,303.0010,5009/10/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Y-mAbs Therapeutics, Inc (YMAB)Johan Wedell-Wedellsborg (Director)Sell17,243$465,561.009/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Zumiez Inc. (ZUMZ)Richard Miles Brooks (CEO)Sell180,000$5,412,600.002,893,0249/6/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
Zumiez Inc. (ZUMZ)Richard Miles Brooks (CEO)Sell124,144$4,105,442.082,893,0249/9/2019View SEC Filing  Tweet This Trade  Share This Trade on StockTwits
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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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