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.

Massive Insider Selling at Apple Inc. (AAPL) & LHC Group Inc. (LHCG), Plus 3 Companies with Notable Insider Buying

Page 1 of 3

Corporate insiders are constantly buying and selling shares of their own companies and outside investors are wise to keep track of such trades, as directors and executives tend to have a good feel for how their companies are performing. To that end, insider buying is usually interpreted as a very positive sign by stock market watchers, which is backed up by past research, which suggests that insider purchases tend to beat broader market benchmarks by a wide margin. On the contrary, insiders can sell shares for a wide range of reasons such as tax requirements and diversification plans, so insider selling is much more difficult to interpret. The proliferation of equity-based compensation and pre-arranged trading plans has distorted insider trading data in recent years, as most insider selling is either related to freshly-exercised stock options or conducted under trading arrangements. Insider Monkey keeps track of spur-of-the-moment insider trading only, as we believe that transactions conducted under trading plans put in place several months earlier are not overly relevant to current market conditions. With that said, this article will examine several noteworthy insider transactions recorded with the SEC on Wednesday.

Academic research has shown that certain insider purchases historically outperformed the market by an average of seven percentage points per year. This effect is more pronounced in small-cap stocks. Another exception is the small-cap stock picks of hedge funds. Our research has shown that imitating the 15 most popular small-cap stocks among hedge funds outperformed the market by nearly a percentage point per month between 1999 and 2012 (read more details here).

This U.S. Fertilizer Maker Had Two Executives Buy Shares after Terminating a Huge Inversion Deal

CF Industries Holdings Inc. (NYSE:CF) has seen two different insiders purchase shares this week. To start with, Christopher D. Bohn, Senior Vice President of Manufacturing, purchased 12,500 shares on Tuesday at prices between $27.88 and $27.95 per share, lifting his overall holding to 31,718 shares. Moreover, Board member Robert C. Arzbaecher snapped up 17,275 shares on the same day at prices ranging from $27.94 to $28.10 per share, of which 275 shares were bought for his daughters. Mr. Arzbaecher holds a direct ownership stake of 66,843 shares following the recent purchase.

Earlier this week, the U.S manufacturer of nitrogen fertilizer and its Dutch rival OCI N.V. terminated their multi-billion-dollar merger after the U.S Treasury changed U.S. tax rules last month to hinder inversion deals. Under the agreement inked in early August, the U.S fertilizer maker was set to combine with the European, North American and global distribution businesses of OCI N.V. and become a subsidiary of a new holding company domiciled in the Netherlands. The deal could have reduced CF Industries Holdings Inc. (NYSE:CF)’s corporate tax rate from 35% to 20%. Shares of CF Industries are 27% in the red year-to-date. John Burbank’s Passport Capital owns 11.16 million shares of CF Industries Holdings Inc. (NYSE:CF) as of March 31.

Follow Cf Industries Holdings Inc. (NYSE:CF)
Trade (NYSE:CF) Now!

Head to the next two pages of this insider trading article to see the details on several noteworthy insider transactions registered at four other companies, including the iPhone maker.

Page 1 of 3

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!