Staples Inc. (SPLS) Registers Insider Selling After Failed Office Depot Merger, Plus 2 Other Companies with Insider Selling

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Leading Truck Body Manufacturer’s Chairman Sells Some Shares

Supreme Industries Inc. (NYSEMKT:STS) was another company that registered noteworthy spur-of-the-moment insider selling in the past several trading sessions. Herbert M. Gardner, current Chairman of the company’s Board and CEO from 1979 to 2011, discarded 19,748 Class A shares on Thursday at prices that fell between $13.45 and $13.68 per share, leaving him with 372,928 Class A shares. Mr. Gardner also owns 587,862 Class B shares, which are freely convertible on a one-for-one basis into Class A shares.

The manufacturer of specialized commercial vehicles including truck bodies, trolleys and specialty vehicles has seen its market capitalization skyrocket by 92% since the beginning of 2016. Supreme Industries Inc. (NYSEMKT:STS)’s consolidated net sales for the three months that ended March 26 came in at $69.4 million, up by 9.7% year-over-year. The increase in the company’s top line was mainly attributable to increased retail and specialty vehicle truck sales, and was partially offset by a drop in fleet truck sales and trolley sales. Moreover, the company’s sales order backlog totaled $102.0 million at the end of the first quarter, up from $94.3 million at the end of March 2015.

There were six hedge fund vehicles monitored by our team with investments in Supreme Industries at the end of the first quarter, up from a mere two funds with holdings at the end of 2015. Israel Englander’s Millennium Management acquired a new stake of 14,261 shares of Supreme Industries Inc. (NYSEMKT:STS) during the first quarter.

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Insider Selling Witnessed at Struggling Office Supply Chain

Staples Inc. (NASDAQ:SPLS) recently saw its first insider trading activity of 2016. Michael T. Williams, Executive Vice President, General Counsel and Secretary, unloaded 12,458 shares on Thursday at prices ranging from $8.59 to $8.60 per share, cutting his overall holding to 71,131 shares.

The office supply chain has seen the value of its shares plunge by 10% since the start of 2016. Earlier this year, Staples Inc. (NASDAQ:SPLS)’s $6.3 billion takeover bid to acquire smaller competitor Office Depot Inc. (NASDAQ:ODP) was blocked by federal regulators on anti-competitive grounds. Soon after the announcement of the failed deal, Staples’ CEO Ronald Sargent, announced his resignation after being at the helm of the company for nearly three decades. The failed merger was attempting to further consolidate the office supply industry, which has been hit significantly by technological changes and online competition in recent years. Staples recently announced plans to shut down at least 50 U.S stores, with the company already having closed around 300 stores in North America since 2011. Consumers and corporate customers emerge as the winners from the failure of the multi-billion-dollar merger, at least in the near-term, while the company’s profit margins will suffer enormously due to increased competition from Office Depot and other fast-growing e-commerce rivals.

The number of money managers tracked in our system that held stakes in Staples rose to 52 from 49 during the first quarter of 2016. Those 52 managers hoarded approximately 17% of the company’s outstanding shares. Richard S. Pzena’s Pzena Investment Management reported owning 34.36 million Staples shares in its latest 13F filing.

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Disclosure: None

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