The information-rich or the spur-of-the-moment kind of insider trading activity has slowed meaningfully as more companies are releasing their earnings reports. Although most publicly traded companies have established blackout periods that restrict insiders from trading securities around earnings announcements, there are a few companies registering spur-of-the-moment insider trading at the moment.
Before looking into the fresh insider trading activity registered at several U.S. companies, let’s try to understand why investors are keeping tabs on insider trading metrics. To begin with, insider buying usually represents a bullish sign as corporate insiders buy their own company’s shares for only one reason: those securities are poised to go higher in the future. Meanwhile, the accurate interpretation of insider selling is much harder to achieve, as insiders can sell shares for a wide range of reasons that have nothing to do with their company’s prospects. Even so, heavy insider selling may encourage outsiders to start selling shares as well in anticipation of bad times ahead. Leaving this discussion aside, let’s have a look at some mild insider trading activity reported with the SEC on Thursday.
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 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.
Director at Emerging Nevada Gold Producer Piles Up Shares
One member of Pershing Gold Corp (NASDAQ:PGLC)’s board snapped up a small block of shares earlier this week. Douglass Scott Barr purchased 3,500 shares on Tuesday at a price of $3.33 per share. Mr. Barr currently owns an aggregate of 10,000 shares after the purchase.
The shares of the emerging Nevada gold producer advancing the Relief Canyon Mine are down a little less than 2% in the past one year. Although Pershing Gold Corp (NASDAQ:PGLC) represents an exploration stage company with no operations at the moment, the company’s project in the Relief Canyon is viewed as a low cost, low CAPEX project whose economics remain strong despite the recent volatility in the gold price. Pershing Gold’s Relief Canyon property rights cover around 25,000 acres. Jim Simons’ Renaissance Technologies LLC owned 282,800 shares of Pershing Gold Corp (NASDAQ:PGLC) at the end of the third quarter.
The next two pages of the article will discuss fresh insider trading observed at four other companies.