Insider Trading in Bank of America (BAC)

Bank of America directors Robert W. Scully and Charles Holliday bought substantial shares of BAC on Tuesday. Charles Holliday purchased 30,000 shares at $12.61, paying nearly $380,000.  Robert Scully purchased 39,500 shares at a slightly lower price of $12.4485, paying nearly half a million dollars.

Bank of America Corp (NYSE:BAC)

Insider trading has historically been very profitable both for insiders and outsiders imitating insiders. However, profits are lower in large cap companies like Bank of America (BAC) because insiders have less of an information advantage over outsiders. This is usually not the case in smaller companies.

 Robert Scully was a member of the Office of the Chairman at Morgan Stanley between 2007 and 2009 and Co-President of Morgan Stanley from February 2006 to December 2007. Robert Scully has been a member of the board of directors of BAC since August 2009. He’s on the Audit and Compensation and Benefits Committees. The last time Robert Scully made a transaction was in October 2009, 3 months after being a director at BAC. He spent more than a million dollars and purchased 62,000 BAC shares at $16.79.  He lost more than a quarter of that investment while the stock market took off more than 10% during the same time period.  So far he doesn’t seem to be a great insider.

 Charles O. Holliday Jr. was the CEO and Chairman of DuPont, an industrial company. Charles Holliday has been a member of the board of directors of Bank of America since September 2009. He’s on the Corporate Governance and Credit Committees. This is his first open market transaction. This transaction is a small part of Holliday’s net worth. Given that he doesn’t have a background in banking and finance, we’re going to assume that he doesn’t have the prowess to derive accurate valuation estimates.

The two issues that stand out for us are that these insider purchases in BAC show a clear consensus and that the BAC stock price has been performing terribly. Insider transactions are usually profitable in value companies which experience sharp declines in stock prices. Insider Monkey, your source for free insider trading data, thinks this is purely a value play by these insiders and that the purchases aren’t really based on any specific non-public information.

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!