Five Interesting Insider Purchases From the Beginning of 2014

Page 1 of 2

Recent studies (read about them) show that insider purchases can be usually interpreted as bullish signals. Wonder why? Well, we believe that insiders face a strong incentive to diversify their wealth away from the company they work in – and therefore reduce their risk. The fact that they ignore the benefits of diversification and buy the stock anyway can be interpreted as a signal of high confidence in the company. This is why, in addition to using hedge fund filings to develop investing strategies, we also maintain a database of insider purchases and take a brief look at significant insider buys to help investors decide if the company is worth further research. Thus, in this article, I will look into five interesting insider purchases that occurred since the start of 2014.

The first transaction I would like to refer to occurred on Jan. 2nd. On the first working day of the year, Michael Dailey, Board Director at Zix Corporation (NASDAQ:ZIXI) acquired 597 shares of the company’s Common Stock. He paid $4.50 per share, and now owns 12,597 shares. Although a bet as small as his last one does not inspire the largest of confidences in the company, you should note that Dailey has been consistently adding shares to his holding every month since May of 2013, when he started a position in the stock.

United States Steel Corporation (NYSE:X)

The day after – Jan. 3rdRobert Mcdonald, Board Director at United States Steel Corporation (NYSE:X) started a position in the company’s stock. Through four different transactions, he procured a total of 2,000 shares of the company. He paid $29.838 for the first 100 shares, $29.8378 for each of the following 200, and $29.8365 each, for an extra 800 shares. In addition, he got 1,000 shares of Common Stock under the terms of the company’s Non-Employee Director Stock Plan.

Insider activity at United States Steel Corporation (NYSE:X) did not stop there, however. Last week, on Jan. 15th, at least 11 board directors bought stock from the company at $29.50 per share. Although the nature of these transactions was not specified at the SEC filings, which means we cannot know if they were a part of some kind of director compensation plan (or something similar), the fact that almost a dozen insiders are betting on the company´s growth cannot be a bad sign, especially as they all paid full-price for the stock, and bough, at least, 3,300 shares each. Even though the outlook for the general steel industry looks complicated in the U.S., analysts expect United States Steel Corporation (NYSE:X) to outperform its competitors over the long-term, so their bets do not seem unwise.

On the second week of 2014, on Monday, Jan. 6th, Anne-Marie Ainsworth, President, Chief Executive Officer and Board Director at Oiltanking Partners LP (NYSE:OILT) filed a Form 4 report with the U.S. Securities and Exchange Commission, declaring a purchase* of the company’s stock. The insider acquired 1,000 shares at prices ranging from $62.20 to $62.46 per common unit (the weighted average price was of $62.37 per share). She now owns 13,000 shares of Oiltanking Partners LP (NYSE:OILT), worth more than $800,000 at the current stock price.

I should highlight that Ainsworth’s last purchase is not the first one this year. Au contraire, she entered a unit purchase plan, which meant that she started increasing her participation in the company every month since Feb. 2013, augmenting her holdings by more than 10,000 shares. Another insider betting on the company is David Griffis, Board Director, who entered this plan even earlier, in Jan. 2012, and has been increasing his position in the stock ever since.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

On the Move: The 10 Fastest Growing Businesses in 2015

Fast Money: The 10 Highest Paying Fast Food Restaurants

Mixing It Up: The 14 Best Music Mashups of 2014

Rito Pls Buff: The 10 Least Played Champions in LoL Season 4

10 Covers of Popular Songs that are Better than the Originals

Must See TV: The 9 Most Anticipated Shows of 2015

The 15 Biggest Box Office Bombs of All Time

10 Things The World Can’t Stand About Americans

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Subscribe

Enter your email:

Delivered by FeedBurner

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 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!