Massive Cluster of Insider Selling at Top-Performing Chip-Gear Maker, Plus Other Noteworthy Insider Trading

CEO of Hybrid Tobacco and Real Estate Company Sells Massive Block of Shares

The man in charge of Vector Group Ltd (NYSE:VGR) discarded a great deal of shares at the beginning of 2017. Chief Executive Officer and President Howard M. Lorber offloaded 300,000 shares on Wednesday at a price of $22.85 per share. Following the sizeable sale, Mr. Lorber currently owns an aggregate of 436,665 shares.

Vector Group Ltd (NYSE:VGR) operates as a holding company focused on manufacturing and selling cigarettes through the Liggett Group and Vector Tobacco subsidiaries; selling electronic cigarettes; and investing real estate properties or projects through its real estate business. Liggett represents the fourth-largest manufacturer of cigarettes in the United States based on unit sales. The hybrid tobacco and real estate company pays out a quarterly cash dividend of $0.40 per share, which equates to an annual yield of 7.05%. However, some fear the company’s hefty dividend payments are not sustainable, as the company pays out as dividends a lot more than it earns. Similarly, Vector Group’s dividend appears to be unsustainable on a free cash flow basis as well, as the dividend payments for the past 12 months exceeded the free cash flow generated over the same period. The shares of Vector Group are 3% in the green for the past year. Jim Simons’ Renaissance Technologies LLC was the equity holder of 6.47 million shares of Vector Group Ltd (NYSE:VGR) at the end of September.

Retiring CEO of Retail REIT Sell Voluminous Block of Shares

National Retail Properties Inc. (NYSE:NNN)’s most well-informed and influential executive also unloaded a massive amount of shares this week. CEO and Chairman Craig Macnab, who recently announced plans to retire as CEO and step down as Chairman and a member of the Board of Directors effective April 28 this year, sold 85,000 shares on Tuesday at $43.99 apiece. Mr. Macnab currently holds an ownership stake of 425,000 shares after the recent sale.

The real estate investment trust (REIT) that acquires, owns and invests in properties leased mainly to retail tenants such as Target and Wal-Mart under long-term net leases has seen the value of its shares increase by 12% in the past year. In mid-October, National Retail Properties Inc. (NYSE:NNN)’s boardroom approved a quarterly dividend of $0.455 per share, which yields 4.01% annually. The dividend yield is quite high for this REIT, often seen as one of the safest and most durable REITs in the world. More importantly, the REIT paid out an annual dividend of $1.78 per share for 2016, with the 4% year-over-year increase representing the 27^th consecutive annual dividend increase for the company. A total number 20 hedge funds from our system had equity stakes in the REIT at the end of the third quarter, up from 19 registered at the end of the second quarter. Ken Fisher’s Fisher Asset Management reported owning roughly 866,000 shares of National Retail Properties Inc. (NYSE:NNN) in the round of 13Fs for the September quarter.

The final page of this article will discuss fresh insider selling observed at two other companies.