It is already common knowledge that corporate insiders are savvy long-term-oriented investors, with their purchases beating broader market benchmarks on aggregate. Similarly, past research indicates that uninformed outsiders can earn abnormal returns by imitating insiders. Insider Monkey is a strong believer of the so-called insider trading anomaly, so investors would be wise to keep track of our insider trading articles.
It is also believed that the trading behavior of those insiders who are more knowledgeable with the overall affairs of their firms, such as chairmen of boardrooms and top-tier executives, is a more successful predictor of future stock performance. Furthermore, numerous investors tend to focus on the insider trading activity registered at companies in the small- and mid-cap space, as these companies do not receive the analyst coverage of larger-cap companies such as Apple Inc. (NASDAQ:AAPL). Insider Monkey processed most Form 4 filings submitted with the SEC on Tuesday and pinned down five companies with noteworthy insider trading, most of which are small-cap firms.
We follow over 700 hedge funds and other institutional investors and by analyzing their quarterly 13F filings, we identify stocks that they are collectively bullish on and develop investment strategies based on this data. One strategy that outperformed the market over the last year involves selecting the 100 best-performing funds and identifying the 30 mid-cap stocks that they are collectively the most bullish on. Over the past year, this strategy generated returns of 18%, topping the 8% gain registered by S&P 500 ETFs.
Board Member at Clinical Stage Biopharmaceutical Company Initiates New Stake
A long-serving member of Acceleron Pharma Inc. (NASDAQ:XLRN)’s Board of Directors purchased a new stake last week. Joseph S. Zakrzewski, a member of the company’s board since March 2011, snapped up a new stake of 4,000 shares on Friday at a price of $25.5 each. Although the size of the purchase isn’t overly significant, the actual timing of the purchase might convey meaningful information for the investment community. After all, the Board member could have purchased shares any time since early 2011, but he initiated a new stake only at the end of 2016.
The shares of the Massachusetts-based clinical stage biopharmaceutical company were down 36% last year, which might have prompted Mr. Zakrzewski to purchase shares after serving on the boardroom for more than five years. While Acceleron Pharma Inc. (NASDAQ:XLRN) has not generated any revenue from the sale of products just yet, the company’s revenue has been derived from collaboration revenue such as license and milestone revenues and cost sharing revenue generated via collaboration and license agreements with partners for the development and commercialization of its therapeutic candidates. The company reported revenue of $3.0 million for the September quarter, as compared to $4.2 million recognized for the same period of the previous year. Peter Kolchinsky’s RA Capital Management owned a 319,000-share stake in Acceleron Pharma Inc. (NASDAQ:XLRN) at the end of the third quarter.
The final two pages of this insider trading article discusses fresh insider selling observed at four companies.