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.

Intuit Inc. (INTU), Copart Inc. (CPRT), and J M Smucker Co (SJM) Have Insiders Jettison Shares at an Alarming Pace

Page 1 of 2

Corporate insiders, particularly managers and Board members of publicly traded corporations, generally possess a lot more up-to-date information about their company than any analyst or other outsider. While insider purchases mostly convey positive information about a company’s future prospects, it is not entirely clear what information insider sales convey. At the end of the day, there is a wide variety of motives for insiders to sell shares, including liquidity needs or need to reduce risk by diversifying, so some insider sales may be less informative to the investment community.

Although most researchers studying the ability of insiders to time the market conclude that insider selling is not indicative of future performance, investors would be wise to incorporate insider selling metrics into their stock selection and analysis process. The main argument for tracking insider selling is that insiders tend to sell shares when their companies’ valuations are approaching or even exceeding their “true” and “fair” market value. Put it differently, insiders’ contrarian approach to investing may point to clear exit points for equity investments. With this in mind, the following article will discuss the recent insider selling activity registered at three U.S. publicly traded companies.

Through extensive research, we have determined that the due diligence that the investors in our database employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also shown that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).

Insider Trading 3

Provider of Financial Management Services Registers Insider Selling

Intuit Inc. (NASDAQ:INTU) has seen three different insiders unload shares so far in June, albeit two of them sold freshly-exercised stock options. Laura A. Fennell, Executive Vice President, General Counsel and Secretary, discarded 10,056 shares on Monday at prices ranging from $107.26 to $107.41 per share. Following the recent purchase, Ms. Fennell continues to own a mere 1,530 shares.

The maker of QuickBooks and TurboTax software products has seen its shares advance by 11% since the beginning of 2016. Intuit Inc. (NASDAQ:INTU)’s QuickBooks small business accounting software assists businesses in tackling accounting and payroll, while TurboTax represents the best-selling tax software. The company has greatly benefited from the global market transition from paper-based, human-produced, and brick-and-mortar bound services to connected services. Indeed, the increased availability of the Internet has revolutionized the way people are managing their financial tasks. Intuit’s net revenue for the first nine months of fiscal 2016 that ended April 30 was $3.9 billion, up 13% relative to the same period of the prior fiscal year.

Intuit fell out of favor with the hedge funds followed by Insider Monkey during the first quarter of 2016, as the number of funds invested in the company declined to 21 from 25 quarter-over-quarter. The 21 asset managers accumulated nearly 3% of the company’s total number of outstanding shares. The provider of business and financial management solutions pays shareholders a quarterly dividend of $0.30 per share, which equates to an annual dividend yield of 1.11%. Ken Griffin’s Citadel Advisors LLC upped its position in Intuit Inc. (NASDAQ:INTU) by 14% during the March quarter to 2.37 million shares.

Follow Intuit Inc (NASDAQ:INTU)
Trade (NASDAQ:INTU) Now!

The next page of this article will discuss the insider selling activity registered at two other companies.

Page 1 of 2

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!