American Woodmark Corporation (AMWD) and Goldman Sachs Group Inc. (GS) Register Noteworthy Insider Selling; Insider Buying Observed at Three Other Companies

Numerous studies conclude that corporate insiders earn significant abnormal profits by trading the securities of their own companies. Interestingly enough, insider trading studies also show that even uninformed outsiders can generate abnormal profits by simply imitating insiders. So is it worth tracking insider trading metrics? Of course it’s worth it!

Although some believe corporate insiders trade on privileged information that is not publicly available, a practice viewed as an unfair and illegal advantage, most corporate insiders usually play by the rules imposed by the SEC when buying and selling shares of their own companies. However, stock market participants should keep in mind that there is an insider trading act that is practically impossible to detect: not trading securities because of insider information. For instance, an insider is considering selling 10,000 shares of his own company, but he quickly finds out that the company is about to receive a buyout offer from another company. The SEC and other stock market participants have no knowledge of the insider’s intent, so he can easily hold onto his 10,000 shares until the offer is made public. Hence, if corporate insiders are selling shares at a rapid pace, it might imply that major positive announcements or events are not anticipated in the short-term future. That said, let’s have a look at a set of noteworthy insider transactions reported with the SEC on Tuesday.

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Board Member at Struggling Operator of Discount Variety Stores Buys Shares After Plunge

One member of Dollar Tree Inc. (NASDAQ:DLTR)’s Board of Directors purchased some shares earlier this week, soon after the nation’s two biggest dollar-store chains released disappointing financial results. Independent Director Conrad M. Hall snapped up 5,000 shares on Monday for $85.60 each, with all these shares being held in a grantor retained annuity trust that currently owns 55,000 shares. Mr. Hall also owns a direct ownership stake of around 20,875 shares.

Dollar Tree Inc. (NASDAQ:DLTR), a leading operator of discount variety stores offering merchandise at the fixed price of $1.00, has seen its market capitalization plunge by 13% in the past month, reflecting disappointing results for its second fiscal quarter that ended July 30. Soon after releasing the earnings report, analysts at MKM Partners slashed their rating on Dollar Tree to ‘Neutral’ from ‘Buy’ and cut their price target on the stock to $80 from $140, arguing that the anticipate “the downshift at Dollar Tree, which could continue, and a more challenging outlook for Family Dollar, to limit valuation on a stock that has enjoyed one of the highest multiples in retail.” Ken Griffin’s Citadel Advisors LLC upped its position in Dollar Tree Inc. (NASDAQ:DLTR) by 52% during the June quarter to 2.42 million shares.

The second page of this article will disclose two companies with fresh noteworthy insider buying, whereas the final page of the article will discuss fresh insider selling registered at two other companies.

CEO of Small Farmland Owner Purchases Some Shares

The man at the helm of Farmland Partners Inc. (NYSE:FPI) also purchased a sizable block of shares this week. President and Chief Executive Officer Paul A. Pittman bought 33,600 shares on Monday at a price tag of $10.42 each. After the recent purchase, Mr. Pittman currently owns 461,304 shares.

The real estate company that acquires and owns farmland located in agricultural markets throughout North America has seen its market value jump by 6% since the beginning of 2016. Farmland Partners Inc. (NYSE:FPI) generates most of its revenues from renting farmland to operators of farming businesses. The REIT’s total rental income under cash leases for the same-property portfolio grew to $2.1 million in the June quarter from $2.0 million recorded a year ago, reflecting an increase in the average annual rent to $186 per acre from $182 per acre. There were a mere three hedge funds followed by Insider Monkey with long positions in the REIT at the end of the second quarter. Jim Simons’ Renaissance Technologies LLC was the owner of 326,500 shares of Farmland Partners Inc. (NYSE:FPI) at the end of the April-June quarter.

Corporate Insider Buys More Shares of Air Logistics Provider

One Board member at Atlas Air Worldwide Holdings Inc. (NASDAQ:AAWW) bought more shares of his own company this week after having bought a 10,000-share block at the beginning of August. Director John K. Wulff acquired 5,000 shares on Monday at prices varying from $35.88 to $35.90 per share, lifting his overall ownership to 25,000 shares.

The shares of the provider of outsourced aircraft and aviation operating services are 10% in the red thus far in 2016. In May, Atlas Air Worldwide Holdings Inc. (NASDAQ:AAWW) sealed a new partnership with e-commerce giant Amazon.com Inc. (NASDAQ:AMZN), under which the air logistics provider will use 20 Boeing 767’s to provide support for Amazon’s deliveries. Just recently, Atlas Air also inked a five-year agreement with FedEx Express to provide five 747-400 freighter aircraft for peak flying seasons from the beginning of 2017 through 2021. Ken Fisher’s Fisher Asset Management reported ownership of 1.21 million shares of Atlas Air Worldwide Holdings Inc. (NASDAQ:AAWW) in its latest quarterly 13F.

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

Executive at Goldman Sachs Sells Some Shares

One member of Goldman Sachs Group Inc. (NYSE:GS)’s executive team unloaded some shares this past week. Edith W. Cooper, Global Head of the Human Capital Management, discarded 14,000 shares on Friday at prices ranging from $165.49 to $167.24 per share, half of which were held in a trust. Ms. Cooper currently holds a direct ownership stake of 32,334 shares, along with an additional block of 33,310 shares held indirectly through a trust.

The leading global investment banking, securities and investment management firm has seen the value of its stock decline by 6% since the start of the year. Following the aftermath of the financial crisis, Goldman Sachs Group Inc. (NYSE:GS) and other industry peers have turned their attention to more basic banking businesses, trying to capitalize on the deposits and loans of middle-class Americans. Goldman Sachs posted net revenues of $7.93 billion for the second quarter of 2016, down 13% year-over-year due to significantly lower net revenues in Investing & Lending and lower net revenues in both Investment Management and Investment Banking. Warren Buffett’s Berkshire Hathaway owns 10.96 million shares of Goldman Sachs Group Inc. (NYSE:GS) as of the end of the second quarter.

Former CEO of Manufacturer of Kitchen Cabinets Offloads Shares

Three corporate insiders at American Woodmark Corporation (NASDAQ:AMWD) sold shares in the past several trading sessions, with most insider selling being related to awards of service-based restricted stock units. However, there was an influential insider who sold a sizable block of shares, the kind of insider selling that might catch the attention of the investment community. Kent B. Guichard, current Chairman of the company’s Board and former CEO of American Woodmark, offloaded 12,502 shares on Friday at prices that fell between $85.00 and $85.43 per share, trimming his ownership to 31,754 shares.

The manufacturer and distributor of kitchen cabinets and vanities for the remodeling and new home construction markets has seen its market cap spike by 10% since the beginning of 2016. The 10% jump in market value reflects strong financial results for the company’s first fiscal quarter that ended July 31. American Woodmark Corporation (NASDAQ:AMWD) reported net sales of $258.2 million for the first fiscal quarter, up 12% year-on-year due to growth in all channels. Meanwhile, the company’s bottom line rose to $21.7 million from $15.2 million reported a year ago. Ken Griffin’s Citadel Advisors LLC had around 121,000 shares of American Woodmark Corporation (NASDAQ:AMWD) in its portfolio at the end of June.

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