Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Cheniere Energy Inc. (LNG) and Vince Holding Corp (VNCE) See Their CEOs Buy Shares; Three Other Companies Register Insider Selling

Page 1 of 3

While there is no way to either deny or confirm the following statement, there is good reason to believe that hedge fund vehicles usually do not pay too much attention to insider trading behavior. Most hedge fund analysts design financial models, analyze financial statements, read sell-side equity research, as well as discuss with management teams of publicly-traded companies. They have access to much more information than insider trading behavior could possibly offer, so they may be avoiding examining insider trading data.

However, smaller-scale retail investors may not have the luxury of reading sell-side equity research or holding private meetings with the management teams of certain companies, so they definitely need to incorporate insider trading metrics in their stock selection and analysis process. Actions speak louder than words, so the investment community needs to pay close attention to insiders’ transactions and moves. Corporate insiders buy shares in their own companies on the open market mostly because they believe those shares are undervalued and no words could replicate the same message as precise as insider buying. Having this in mind, let’s have a look at several notable insider transactions recorded with the SEC on Thursday.

Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).

Cheniere LNG Tanker Shipping Ship Liquid Natural Gas Vessel Fuel Carrier

Oleksandr Kalinichenko / Shutterstock.com

U.S. Exporter of LNG Has Freshly-Appointed CEO Buy Shares

Cheniere Energy Inc. (NYSEMKT:LNG) saw its freshly-appointed Chief Executive Officer and President buy shares earlier this week. Jack A. Fusco purchased one block of 14,116 shares and another of $14,115 shares on Wednesday at prices varying from $32.90 to $33.01 per share, with the latter block being held through Fusco Energy Investments LLP that currently holds 36,496 shares. After the recent purchases, Mr. Fusco currently holds a direct ownership stake of 272,878 shares. Just recently, well-known short seller Jim Chanos, founder of Kynikos Associates, presented his short thesis for the U.S. exporter of liquefied natural gas (LNG) at the SALT conference in Las Vegas, calling the company “financial engineering gone crazy”. However, analysts at Citigroup, who have a ‘Buy’ rating on Cheniere Energy Inc. (NYSEMKT:LNG) and a price target of $47, believe there are two primary catalysts for the company over the forthcoming 18 months. One of the two catalysts is the fresh appointment of Mr. Fusco as CEO, while the second one involves the company’s contracts to sell 84 LNG cargoes through 2018, which could be worth $1.0 billion in gross revenue. Shares of Cheniere are down 11% year-to-date. Carl Icahn’s Icahn Capital LP owned 32.68 million shares of Cheniere Energy Inc. (NYSEMKT:LNG) at the end of March.

Follow Cheniere Energy Inc (NYSEMKT:LNG)
Trade (NYSEMKT:LNG) Now!

Page 1 of 3

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...
X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!