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.

Well-Known Vehicle Rental Operator and GPU Specialist See Insiders Offloading Shares, Plus Other Noteworthy Insider Transactions

Page 1 of 3

U.S. Securities and Exchange Commission regulations on insider trading state that it “shall be unlawful for an insider to sell or buy a security of the issuer, while in possession of material information with respect to the issuer or the security that is not generally available to the public.” Hence, corporate insiders who buy shares of their company before a huge positive announcement or sell shares before the release of a disappointing earnings report may receive a call, e-mail or visit from the SEC.

While Board members and executives can be penalized for buying and selling securities based on material non-public information, corporate insiders cannot be penalized for not trading securities. What do I mean by that? Corporate insiders are known for following the pattern of “buying low and selling high,” but how do they find attractive exit points? Let’s imagine for a minute that a COO plans to liquidate some shares for personal cash needs, but he or she quickly learns that the company discusses a possible sale of the entire business. The COO will most likely wait until the buyout offer is made public so that he or she can cash out at a much higher stock price. This case involves the usage of material non-public information, but the SEC cannot penalize the COO after all. All in all, while heavy insider selling does not imply worsening prospects for the company going forward, it might suggest that insiders do not anticipate any major positive developments in the near term. That said, let’s analyze a set of noteworthy insider transactions reported with the SEC on Monday.

Through extensive research that covered the portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

insider trading

More Insider Buying at Healthcare-focused Holding Company

Shortly after three corporate insiders at Providence Service Corporation (NASDAQ:PRSC) bought shares in early September, another insider purchased a block of shares last week. David A. Coulter, appointed to the company’s Board of Directors in early July of 2016, purchased 4,225 shares on Friday in 14 transactions at prices that ranged from $46.99 to $47.50 per share. Following the recent purchase, Mr. Coulter currently owns 6,159 shares.

The shares of the holding company, whose subsidiaries provide critical healthcare and workforce development services, are up a little less than 1% since the beginning of the year. Providence Service Corporation (NASDAQ:PRSC) reported net consolidated service revenue of $450.63 million for the second quarter, up 7.7% year-over-year. In late August, healthcare-focused private equity firm Frazier Healthcare Partners inked a deal to acquire a 60% equity interest in health-assessment provider Matrix Medical Network, a subsidiary of Providence Service. Jim Simons’ Renaissance Technologies LLC was the largest equity holder of Providence Service Corporation (NASDAQ:PRSC) within our database at the end of June, with an ownership of 915,300 shares.

Follow Providence Service Corp (NASDAQ:PRSC)
Trade (NASDAQ:PRSC) Now!

The next two pages of this article will discuss several other notable insider transactions reported with the SEC on Monday.

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!