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.

Founder of Battered Rent-to-Own Company Buys Shares After Activist Criticism, Plus Other Noteworthy Insider Trading

Investors have been keeping track of insider trading metrics for decades. After all, corporate insiders tend to have a natural edge over retail investors or analysts when it comes to trading their company’s shares, as insiders usually has a better understanding of their businesses and respective industries than anyone else. Hence, retail investors are always a step behind those “in the know” regardless of how much research you do or how much financial news you read.

If only retail investors could attend a company’s board meeting, they could find out what is really going on behind the scenes. Insider buying metrics have been used as a sign of stock price appreciation for years. On the contrary, insider selling is mostly interpreted as a bearish sign. Indeed, insider buying and selling activity should not be used as the sole indicator when making decisions of buying or selling a company’s stock. Nonetheless, legitimate insider trading could represent a good starting point to further investigate a company’s fundamentals. With that in mind, let’s proceed to the discussion of a set of noteworthy insider transactions reported with the SEC on Friday.

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 39.7% gains over the past 12 months and outperformed the 24.1% gain enjoyed by the S&P 500 ETFs. Our enhanced small-cap hedge fund strategy returned more than 45% over the last 12 months and outperformed SPY by more than 30 percentage points over the last 4.5 years (see the details here).

Insider Trading Wall Street Stock Market Dow Jones bank benefit business capital chart company corporate

Francisco Amaral Leitao /

CEO of Struggling Beauty Products Firm Buys Shares – Cluster of Buying Looms

Shortly after Coty Inc. (NYSE:COTY)’s Chief Legal Officer, Greene McMullen, acquired a 40,500-share stake a little bit more than a week ago, the man in charge of the company also piled up some shares. Chief Executive Officer Camillo Pane bought 36,270 Class A shares on Wednesday and 36,080 shares on Thursday at prices varying from $18.42 to $19.91 per share. Mr. Pane currently owns an aggregate of 287,657 shares following these purchases.

The shares of the beauty-product maker have fallen by 34% in the past year, with the recent spike in insider buying coming after the firm’s second-quarter results were released and put additional pressure on the stock. Coty Inc. (NYSE:COTY) said the soft results for quarter that ended December were caused by competitive pressure in the consumer beauty market and “distraction” from the process of absorbing the acquisition of Procter & Gamble Co (NYSE:PG)’s global fine fragrances, salon professional, cosmetics and retail hair color businesses, along with select hair styling brands. The acquisition of P&G Beauty Brands, which brought brands such as CoverGirl under Coty’s umbrella, resulted in higher-than-expected inventory. Ric Dillon’s Diamond Hill Capital upped its position in Coty Inc. (NYSE:COTY) by 53% during the December quarter to 9.88 million shares.

Follow Coty Inc. (NYSE:COTY)
Trade (NYSE:COTY) Now!

Let’s head to the second page of the insider trading article, where we briefly analyze some insider buying at two other companies.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.