Insider Trading Law Alert: Better The Devil You Know? Tipping Liability, Martoma and the Rise of 18 U.S.C. § 1348 (Lexology.com)
Insider trading has frequently been splashed across headlines in recent months, with a congressman, an NFL player, a comedy writer, and a Silicon Valley executive all facing charges.1 In the background of these headlines are two legal developments that give the government greater flexibility to successfully litigate future insider trading cases, particularly those involving tipping.2 First, the US Court of Appeals for the Second Circuit’s revised decision in United States v. Martoma3 embraced a broad theory of liability under Section 10(b) of the Securities Exchange Act and Rule 10b-5 (hereinafter, collectively, “Section 10(b)”) that prohibits a party from tipping with an “intent to benefit” the recipient.
Infinera Corp (INFN) CEO Thomas J Fallon Bought $166,000 of Shares (GuruFocus)
CEO of Infinera Corp (NASDAQ:INFN) Thomas J Fallon bought 50,000 shares of INFN on 05/15/2019 at an average price of $3.32 a share. The total cost of this purchase was $166,000. Infinera Corp is an optical transport networking equipment provider. The company serves telecommunications service providers, Internet content providers, cable providers, research and education institutions, and government entities. Infinera Corp has a market cap of $590.240 million; its shares were traded at around $3.32 with and P/S ratio of 0.53.
An Insider at Catasys (NASDAQ: CATS) is Selling Shares (Analyst Ratings)
Today, an Insider at Catasys (CATS), David E. Smith, sold shares of CATS for $778.7K. Over the last month, David E. Smith has reported another 5 Sell trades on CATS for a total of $6.46M. Based on Catasys’ latest earnings report for the quarter ending March 31, the company posted quarterly revenue of $6.81 million and GAAP net loss of $2.92 million. In comparison, last year the company earned revenue of $1.91 million and had a GAAP net loss of $4.22 million. Currently, Catasys has an average volume of 49.29K.
Thursday 5/16 Insider Buying Report: AFIN, GOGO (Nasdaq.com)
At American Finance Trust, a filing with the SEC revealed that on Tuesday, Director Lisa Kabnick purchased 100,000 shares of AFIN, for a cost of $10.43 each, for a total investment of $1.04M. Kabnick was up about 12.9% on the buy at the high point of today’s trading session, with AFIN trading as high as $11.77 at last check today. American Finance Trust is trading up about 4.1% on the day Thursday. Before this latest buy, Kabnick made one other buy in the past twelve months, purchasing $75,359 shares for a cost of $15.07 each. And at Gogo, there was insider buying on Tuesday, by Director Charles C. Townsend who bought 100,000 shares at a cost of $5.55 each, for a trade totaling $554,849. Before this latest buy, Townsend bought GOGO on 2 other occasions during the past twelve months, for a total investment of $1.95M at an average of $4.66 per share.
The Chief Growth Officer of Computer Programs and Systems, Inc. (NASDAQ: CPSI) is Selling Shares (AnalystRatings.com)
Today, the Chief Growth Officer of Computer Programs and Systems, Inc. (CPSI), David Dye, sold shares of CPSI for $95.71K. In addition to David Dye, 2 other CPSI executives reported Sell trades in the last month. CPSI’s market cap is $390.9M and the company has a P/E ratio of 22.53. Currently, Computer Programs and Systems, Inc. has an average volume of 14.42K. Based on 4 analyst ratings, the analyst consensus is Moderate Buy with an average price target of $34.00, reflecting a 24.5% upside. One of the top 25 analysts, according to TipRanks.com, recently recommended Hold CPSI with a $32 price target.
