Courtesy of Insider Insights, I have compiled a list of significant insider/institutional purchases and sales that have been filed with the SEC over the last week–but does this activity indicate that you should buy or sell?
Before we look at the most significant activity from the last week, keep in mind that most, but not all, took place in the open market. The filer, or person/firm that is buying or selling, is not necessarily a director, but can also be institutions or other beneficial owners; those with large stakes. With that said, let’s look at the most significant transactions from last week.
|Company||Filer Name||Bought or Sold||Shares||Dollar Amount (rounded)|
|Valeant Pharmaceuticals Intl Inc (NYSE:VRX)||Morfit G Mason||Bought||1,352,941||$115 million|
|Summit Midstream Partners LP (NYSE:SMLP)||Summit Midstream||Bought||3,107,698||$98 million|
|Google Inc (NASDAQ:GOOG)||Eric Schmidt||Sold||76,428||$66 million|
|TD Ameritrade Holding Corp. (NYSE:AMTD)||Joe Ricketts||Sold||2,411,397||$58 million|
Large Debt Overlooked For Growth
Even after a 92% gain over the last year, director Mason Morfit believes that Valeant Pharmaceuticals Intl Inc (NYSE:VRX) is still worth buying. Since buying the eye drug company Bausch & Lomb for $8.7 billion, Valeant Pharmaceuticals Intl Inc (NYSE:VRX) has seen several upgrades from the likes of Jefferies, CRT Capital, and Goldman Sachs.
This is a company that has hit the debt and bond markets particularly hard over the last few years to fund high-profile acquisitions. With that said, the company is growing at about 40% year-over-year, has a large and diversified pipeline, and has solidified itself as an all-around diversified biopharmaceutical company.
Personally, I’d like to see the company grow internally through R&D rather than paying expensive premiums for its competitors, but Morfit begs to differ.
Firing On All Cylinders
Summit Midstream Partners LP (NYSE:SMLP) is an energy company that is rarely discussed, but has very quietly produced gains of 60% over the last year. This is a very efficient company, one with operating margins of 34%, that is also seeing top-line growth of more than 20% year-over-year.
In addition, an investment in the stock pays a forward dividend yield of nearly 5%. Therefore, it should serve as no surprise that Summit Midstream Partners LP (NYSE:SMLP) is betting big on this company.
The Trend Of Continuous Selling Continues
Considering that Google Inc (NASDAQ:GOOG) has a market cap of nearly $300 billion, a $66 million insider sale is fairly small. However, the 2.7 million shares that have been sold over the last six months is significant.