Basic Energy Services Inc. (BAS) Insiders Sell Shares After Exiting Bankruptcy Protection, Plus Other Insider Trading

The U.S. Securities and Exchange Commission restricts insiders from buying or selling securities based upon knowledge of material confidential and proprietary information not available to the public. But that does not mean insiders cannot trade their company’s shares. Of course, most Board members and executives will not buy shares ahead of merger announcements or other information-heavy events as they did decades ago, but they do follow a pattern of buying low and selling high when trading securities.

Investors would definitely love to buy low and sell high on a consistent basis, but it’s rather impossible to time the market accurately on all occasions. While insider buying usually conveys positive sentiment, insider selling is not necessarily bearish, as some investors might think. Corporate insiders tend to sell shares for a wide range of reasons, some of which have nothing to do with their company’s current developments or future prospects, so investors should carefully interpret this type of activity. That said, the following article will lay out some noteworthy insider selling reported with the SEC on the final trading day of 2016, as well as some mild insider buying observed at two companies.

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Insiders at Venture Capital Firm Buy Shares After Release of Restructuring Plans

Several insiders at Harris & Harris Group Inc. (NASDAQ:TINY) purchased shares during the final few trading sessions of 2016. Daniel B. Wolfe, President, Chief Financial Officer and Chief Compliance Officer, purchased 10,000 shares on Friday at a weighted average price of $1.32 per share, as well as 9,000 shares last Tuesday at an average price of $1.29 per share. However, Dr. Wolfe offloaded 3,465 shares on Friday at $1.38 apiece, a sale reported as a payment of exercise price or tax liability using portion of securities. Following these transactions, the company’s President currently owns an aggregate of 151,686 shares. Board member Kevin Rendino bought 40,432 shares on Thursday for $1.34 each, lifting his overall holding to 202,000 shares.

The publicly-traded venture capital firm operates as a business development company (BDC) focused on BIOLOGY+ companies – interdisciplinary life sciences companies where biology innovation is interconnecting with innovations in various areas such as electronics, physics, and mathematics, to name just a few. Because the company’s share price fell by 37% in 2016 as “the market reflects a pessimistic view of our business model,” the BDC recently released a proposed plan for a strategic restructuring aimed at unlocking value for shareholders. Specifically, Harris & Harris Group Inc. (NASDAQ:TINY) recommends the separation of the company into two distinct entities: a closed-end fund called 180 Degree Capital that will focus on optimizing the value of its existing portfolio and pursuing a new investment strategy focused on constructive activism in undervalued small publicly-traded companies; and HALE.life Corp that will be an operating company focused on building high-growth, precision health and medicine businesses. John W. Rogers’ Ariel Investments was the owner of 4.88 million shares of Harris & Harris Group Inc. (NASDAQ:TINY) at the end of the third quarter.

The next two pages of this insider trading article will discuss the noteworthy insider trading witnessed at four other companies.

CEO of Low-Priced Biopharmaceutical Company Buys Shares Ahead of Year-End

The man in charge of Neuralstem Inc. (NASDAQ:CUR) purchased a block of shares before the end of the year. Richard Daly, President and Chief Executive Officer of the biopharmaceutical company since mid-February 2016, purchased 32,259 shares two Fridays ago, at $0.31 apiece. After the not-so-distant purchase, Mr. Daly currently owns an aggregate of 134,939 shares.

The shares of the biopharmaceutical company focused on developing central nervous system therapies based on its proprietary neural stem cell technology lost 73% in 2016. Neuralstem Inc. (NASDAQ:CUR)’s patented technology facilitates the production of various types of central nervous system stem cells, which are being developed for the treatment of central nervous system diseases and conditions. The company currently has two product candidates in clinical development in a total of four different indications. Hal Mintz’s Sabby Capital trimmed its stake in Neuralstem Inc. (NASDAQ:CUR) by 58% during the September quarter to 2.79 million shares.

CEO of U.S. Energy Company Offloads Shares

Let’s turn our attention to several noteworthy insider sales reported on Friday, starting with the insider selling at Newfield Exploration Co. (NYSE:NFX). President and CEO Lee K. Boothby sold 30,000 shares on Wednesday at a price tag of $41.72 each. Mr. Boothby currently owns 230,162 shares following the recent sale.

The independent energy company engaged in the exploration, development and production of crude oil, natural gas and natural gas liquids saw its shares gain 25% last year. Newfield Exploration Co. (NYSE:NFX)’s operations are mainly focused on large-scale onshore liquids-rich resource plays in the United States, with the principal areas of operations being the Anadarko and Arkoma basins of Oklahoma, the Williston Basin of North Dakota, and the Uinta Basin of Utah. The company’s domestic oil, gas and NGL revenue decreased by $91 million in the nine month-period ended September 30, to $898 million, reflecting a 20% decrease in average realized prices relative to the same period of the previous year. There were 45 hedge funds in our system invested in the energy company both at the end of the third and second quarters, amassing around 10% of the company’s outstanding shares on September 30. Clint Carlson’s Carlson Capital had 1.70 million shares of Newfield Exploration Co. (NYSE:NFX) in its portfolio at the end of September.

The final page of this article reveals the fresh insider selling recently observed at two other companies.

Influential Executive at Professional Services and Insurance Brokerage Sells Shares

A well-informed insider at Marsh & McLennan Companies Inc. (NYSE:MMC) discarded some shares last week. Alexander S. Moczarski, Chairman of Marsh & McLennan Co. International, and President and CEO of Guy Carpenter – the reinsurance intermediary subsidiary of Marsh & McLennan Companies, unloaded 8,850 shares on Thursday at $68.00 apiece. Following the recent sale, Mr. Moczarski currently owns a total of 20,029 shares.

The shares of the global professional services and insurance brokerage firm were 24% in the green for 2016. Marsh & McLennan Companies Inc. (NYSE:MMC) serves as the parent company of a number of leading risk experts and specialty consultants such as Marsh, an insurance brokerage and risk advisor; Guy Carpenter, the risk and reinsurance specialist; and Mercer, the provider of HR and related financial advice and services; among others. The company’s revenue for the first three quarters of 2016 totaled $9.85 billion, up from $9.56 billion recorded for the same period of 2015. Jim Simons’ Renaissance Technologies added a 754,500-share stake in Marsh & McLennan Companies Inc. (NYSE:MMC) to its portfolio during the third quarter.

Insiders at Oilfield Services Company Sell Shares After Exiting Bankruptcy Protection

Several insiders at Basic Energy Services Inc. (NYSE:BAS) offloaded shares this past week. To start with, Douglas B. Rogers, Vice President of Corporate Marketing, sold 7,796 shares on Thursday at prices ranging from $35.30 to $35.46 per share, cutting his overall holding to a mere 57 shares. Eric Lannen, Vice President of Human Resources, liquidated 1,500 shares on Friday at a price tag of $36.13 per share. Mr. Lannen currently owns an aggregate of 4,392 shares after the recent sale.

The insider selling discussed above comes shortly after the oilfield services company completed its restructuring and recapitalization plan and emerged from Chapter 11 bankruptcy protection. Clearly, the aforementioned insider selling should not worry investors, as some insiders might have needed to raise some cash for personal reasons (which they were unable to do throughout the reorganization process). Basic Energy Services Inc. (NYSE:BAS) filed for Chapter 11 bankruptcy in October after announcing that it had reached a deal with creditors on a prepackaged reorganization to reduced its debt load. Ken Griffin’s Citadel Advisors owned around 101,000 shares of Basic Energy Services Inc. (NYSE:BAS) at the end of September.

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