Do Insiders Envisage Limited Upside at These Three Companies?

Let’s now refocus our attention on Global Payments Inc. (NYSE:GPN), a provider of payment technology services. Director Gerald J. Wilkins offloaded 1,000 shares on Tuesday for $130.46 each, trimming his stake to 9,500 shares. Global Payments Inc. (NYSE:GPN)’s stock has advanced by over 41% since the beginning of the year, so the Director might have decided to take some profits off the table. The company delivered a solid financial performance in the third quarter, reporting adjusted net revenue of $537.0 million, which was up 8% year-over-year. Similarly, its cash diluted earnings per share increased 25% year-over-year to $1.57. Even more to that, Global Payments increased its full-year earnings per share guidance to the range of $5.77-to-$5.92, which yields a growth of 14%-to-17% relative to last year. It is also worth mentioning that the company announced a two-for-one stock split, which will be achieved in the form of a stock dividend for one additional share for each outstanding share that will be payable on November 2. Israel Englander’s Millennium Management was one of the top stockholders of Global Payments Inc. (NYSE:GPN) within our database at the end of the June quarter, owning nearly 859,000 shares.

Ultimately, we will take a thorough look at the insider selling activity at Ciena Corporation (NYSE:CIEN). James E. Moylan Jr., Senior Vice President, Finance and Chief Financial Officer, reported selling 1,000 shares on Wednesday at a price per share of $23.34. After the recent sale, the executive owns 379,533 shares, which also include unvested restricted stock units and performance stock units. There were other insiders who sold shares recently, but their transactions were conducted under Rule 10b5-1 trading plans, so we eschew from examining those trades. During the third quarter, RBC Capital Markets upgraded Ciena Corporation (NYSE:CIEN) to “Outperform” from “Sector Perform”, and raised its price target to $28 from $26, citing the company’s strong focus on margins and cash flow, diversification of customers and no exposure to the Chinese market. In the meantime, the stock have gained over 21% year-to-date, but it is still hard to stipulate what might have caused the executive to sell shares. William Harnisch’s Peconic Partners LLC added a 831,300-share position in Ciena Corporation (NYSE:CIEN) during the June quarter.

Disclosure: None