As the first earnings season since the U.S. election has kicked off with the release of three banking giants’ financial results, investors may anticipate insider trading activity to slow down quite meaningfully over the course of the next few weeks. Although some may have expected aluminum giant Alcoa to unofficially start the fourth-quarter earnings season, the company’s split into two companies to separate its raw aluminum operations from its aerospace and automotive supply businesses marks the end of an era.
Despite experiencing a quiet period of insider trading, investors should be on the lookout for new investment opportunities as disappointing earnings reports could create new entry points for both insiders and investors. Corporate insiders usually buy battered stocks poised to go higher in subsequent months and years. After all, Board members and executives are known for following the pattern of buying low and selling high. With that in mind, the following article will discuss some mild insider buying registered at two companies, as well as fresh insider selling at three other companies.
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CEO of Owner of Very Large Gas Carriers Purchases Shares for His Child’s Future
To start with, let’s have a look into the insider buying activity observed at Dorian LPG Ltd (NYSE:LPG). Chief Executive Officer and President John C. Hadjipateras reported Wednesday the purchase of 20,000 shares at prices varying from $9.30 to $9.45 per share. The shares were originally held by Mr. Hadjipateras’ spouse, but the same amount of shares was then transferred to the LMG Trust. The beneficiary of the trust is one of their children. The CEO also holds a direct ownership stake of 2.28 million shares.
The shares of the owner and operator of very large gas carriers are up 7% in the past year, after having gained an impressive 66% in the past three months. The OPEC agreement reached last year to cut oil output and colder weather in Northern Asia and Europe appear to have positively impacted seaborne LPG trade and led to stronger demand for Dorian LPG Ltd (NYSE:LPG)’s vessels in recent months. The company’s revenues for the September quarter were $33.6 million, a decrease of 55.2% year-over-year. The decrease mainly reflects lower VLGC rates and vessel utilization. Michael Lowenstein’s Kensico Capital was the equity holder of 8.01 million shares of Dorian LPG Ltd (NYSE:LPG) at the end of the third quarter.
Let’s head to the next two pages of the article, where we will discuss noteworthy insider trading activity witnessed at four other companies.