Board Members at Lawson Products Inc. (LAWS) and Largest U.S. Title Insurance Underwriter Discard Sizeable Blocks of Shares, Plus Noteworthy Insider Buying

While a wave of optimism has propelled U.S. stock markets to new highs since Donald Trump’s presidential-election victory, corporate insiders appear to be taking a contrarian approach to investing at the moment. According to data from provider of insider trading and news the Washington Service, a total of 3,500 insiders at Russell 3000 companies have discarded shares of their companies in the last three weeks and only 467 purchased shares. This compares with the monthly average of 1,832 sellers this year through October.

Wall Street analysts and investors watch closely insider trading data because Board members and executives are understood to have a better understanding about their companies’ business operations and future prospects than any of us, so their transactions may serve as great tips for outsiders. Hence, one may be worried that insiders’ behavior somewhat diverges from the one of investors, who have poured more capital into equities since Donald Trump’s surprising victory. Nonetheless, the big increase in insider selling may have a straightforward explanation: U.S. equities are reaching new all-time market highs. As insiders have a significant portion of their wealth tied up with their companies’ shares, some of them could want to diversify their holdings near all-time highs. Leaving this discussion aside, let’s have a look at a set of noteworthy insider transactions reported with the SEC on Friday.

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Board Member at Single-Family Property REIT Boost Stake Significantly

Let’s kick off our discussion by analyzing the recent insider buying observed at American Homes 4 Rent (NYSE:AMH). Board member Tamara Hughes Gustavson, the daughter of the founder of American Homes 4 Rent, bought 162,400 Class A shares on Thursday at prices that varied from $20.46 to $20.60 per share. Ms. Gustavson, the daughter of Chairman B. Wayne Hughes, currently holds an aggregate of 13.14 million shares following the recent purchase.

The shares of the publicly-traded REIT focusing on single-family rental homes have gained 24% since the beginning of the year. In mid-October, analysts at JMP Securities started coverage on American Homes 4 Rent (NYSE:AMH) with a ‘Market Outperform’ rating and a price target of $25, citing “outsized” expected rent growth over the next two to three years. The REIT’s core property revenues from same-home properties for the September quarter increased by 5.5% year-on-year to $107.15 million, reflecting higher average monthly rental rates and higher average occupancy levels. Jason Karp’s Tourbillon Capital Partners trimmed its position in American Homes 4 Rent (NYSE:AMH) by 21% during the third quarter to 7.82 million shares.

The next pages of this insider trading article will discuss fresh insider purchases and sales witnessed at other companies.

Board Member of Chipmaker Analog Devices Buys Shares

One member of Analog Devices Inc. (NASDAQ:ADI)’s Board of Directors piled up some shares earlier this month. Board member Bruce R. Evans purchased 15,700 shares on Thursday, of which 700 shares were purchased at a price of $71.34 per share. The remaining 15,000 shares were acquired at prices varying from $73.62 to $73.84 per share. Mr. Evans holds an ownership stake of 26,690 shares after the transactions discussed above.

In late July, Analog Devices Inc. (NASDAQ:ADI) agreed to buy independent manufacturer of high performance linear integrated circuits Linear Technology Corporation (NASDAQ:LLTC) for around $14.8 billion, with the transaction anticipated to be completed by the end of April. Under the terms of the agreement, Linear shareholders are set to receive $46 per share in cash and 0.2321 of a share of Analog Devices at closing. Just recently, analysts at J.P. Morgan raised their price target on Analog Devices to $74 from $70, saying that the expected deal with Linear Technology “should create one of the best business models in the S&P 500.” Moreover, there is greater optimism in reaching revenue synergies, driven by potential new products and cross-selling across geographies and customers. Analog Devices has seen its market value climb by 26% thus far in 2016. Cantillon Capital Management, run by William Von Mueffling, was the owner of 6.99 million shares of Analog Devices Inc. (NASDAQ:ADI) at the end of September.

Insiders at Battered Fluidigm Corporation Purchase Shares

Two insiders at Fluidigm Corporation (NASDAQ:FLDM), including the man in charge of the company, boosted their holdings last week. To start with, President and CEO Stephen Christopher Linthwaite bought 55,000 shares on Wednesday in multiple transactions at prices ranging from $6.17 to $6.49 per share. Mr. Linthwaite currently owns a total of 58,000 shares following the purchase mentioned above. Board member Samuel D. Colella snatched up 20,000 shares on the same day at prices that fell between $6.17 and $6.47 per share, a purchase that lifted his overall holding to 39,123 shares.

Fluidigm Corporation (NASDAQ:FLDM) creates, manufactures, and markets technologies and life-science tools focused on the exploration and analysis of single cells, as well as the industrial application of genomics. The company has lost 38% of its market capitalization since the start of the year, reflecting disappointing revenue trajectory and lower-than-anticipated financial results. As Fluidigm’s revenue has been on a decline as of late, the company plans to implement efficiency and cost reduction initiatives to reduce operating expenses. In mid-October, John A. Levin’s Levin Capital Strategies L.P. filed a 13D filing with the SEC revealing a 25.2%-stake in Fluidigm (i.e. 7.32 million shares). The hedge fund vehicle bought the shares on the premise that they were undervalued and represented an attractive investment opportunity when purchased. Despite disclosing this massive stake, Levin Capital Strategies will remain a passive investor in Fluidigm.

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

Non-Executive Chairman of Industrial Distributor of Maintenance and Repair Products Offloads Shares

One of the most well-informed insiders at Lawson Products Inc. (NASDAQ:LAWS) offloaded a sizeable block of shares last week. Ronald B. Port, Non-Executive Chairman of Lawson Products since April 2007 and Board member since 1984, discarded 300,000 shares on Wednesday at a price tag of $23.45 per share, all of which were held in trusts. Mr. Port, the son of Lawson’s founder Sidney L. Port, currently owns an indirect ownership stake of 831,041 shares, as well as a direct ownership stake of 132,585 shares.

In mid-November, the industrial distributor of maintenance and repair products completed the acquisition of Vancouver-based distribution company Mattic Industries Limited. Mattic industries operates as a distributor of rivets, fasteners and other industrial components throughout Western Canada. Lawson Products Inc. (NASDAQ:LAWS)’s net sales totaled $70.2 million for both the third quarter of 2016 and 2015. Higher sales generated from the addition of more sales representatives were offset by a general slowdown in the Maintenance, Repair and Operations (MRO) distribution marketplace, and weaker demand from customers operating in the oil and gas industry. The shares of Lawson Products are up 3% year-to-date. Jim Simons’ Renaissance Technologies LLC owned 41,216 shares of Lawson Products Inc. (NASDAQ:LAWS) at the end of the third quarter.

Board Member at Largest U.S. Title Insurance Underwriter Discards Shares

A member of FNF Group of Fidelity National Financial Inc. (NYSE:FNF)’s boardroom also unloaded a great deal of shares last week. Frank P. Willey, who served as the Vice Chairman of the company’s Board of Directors until February 2016, liquidated 200,800 shares on Thursday, 40,077 shares on Tuesday, and 23,662 shares on Monday at prices varying from $32.00 to $33.36 per share. After this series of transactions, Mr. Willey currently owns an aggregate of 959,892 shares.

The largest title insurance underwriter in the United States has seen the value of its shares plunge by 8% since the beginning of the year. FNF Group of Fidelity National Financial Inc. (NYSE:FNF) also represents the majority owner of Black Knight Financial Services Inc. (NYSE:BKFS), a fast-growing provider of cloud-based tech software to the nation’s largest mortgage services. Bulls have been arguing that FNF deserves a much higher valuation because of its majority stake in Black Knight, with the company’s management planning to make a decision on whether to spin-off its remaining stake in Black Knight as soon as late 2017. There were 19 hedge funds from our system with stakes in FNF at the end of September, down from 20 funds recorded at the end of June. Keith Meister’s Corvex Capital added a 10.77 million-share stake in FNF Group of Fidelity National Financial Inc. (NYSE:FNF) to its portfolio during the third quarter.

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