The Chairmen of 4 Companies Unload Shares, Plus Insider Buying at Lions Gate (LGF)

The markets are in the green this morning, buoyed by existing home sales rising by 3.2% in September. On the other hand, weekly jobless claims in the U.S. rose higher than expected, to 260,000, though remaining firmly in strong territory.

In this daily insider trading article, we’ll take a look at several prominent insider transactions that were executed over the past few days, and which did not involve either trading plans or the execution of stock options. They involve the Chairmen of four companies, as well as a Director at Lions Gate.

Through extensive research that covered the portfolios of several hundred large investors between 1999 and 2012, we determined that following the small-cap stocks that large money managers are collectively bullish on, can generate monthly returns nearly 1.0 percentage points above the market (see the details here).

Director Buys Shares of Lions Gate Entertainment Corp (USA) (NYSE:LGF)

Lions Gate Entertainment Corp (USA) (NYSE:LGF) Independent Director Arthur Evrensel acquired 2,600 shares at $18.60 each on Tuesday, lifting his direct ownership stake in the entertainment production company to 44,906 shares. That amount includes 3,815 restricted stock units that will begin to vest in September 2017.

The purchase comes amid Lions Gate’s continued struggles at the box office and on the stock market, as shares have sagged by 41% this year. The company has also suffered a number of executive departures in recent months, including Co-President of Production Bobby Cohen and Lionsgate Motion Picture Group Co-Chairman Rob Friedman.

Nonetheless, Lions Gate Entertainment Corp (USA) (NYSE:LGF) was one of the most popular small-cap stocks among the collection of hedge funds that we track during the second quarter, as a net total of eight more hedge funds were long the stock on June 30 than on March 31, 40 in all. The move into the stock was likely the result of Lions Gate’s announcement at the end of the quarter that it would acquire Starz (NASDAQ:STRZA) in a deal valued at $4.4 billion.

Head of Ennis Inc. (NYSE:EBF) Unloads Shares

The Chairman, President and CEO of Ennis Inc. (NYSE:EBF), Keith S. Walters, disposed of 10,000 shares of his company at an average price of $15.53 on Wednesday. Mr. Walters now holds a direct ownership stake of 321,333 shares.

That the man leading Ennis Inc. (NYSE:EBF) is selling shares at a time when the stock has been continuously reaching new 52-week lows over the past several trading sessions is not exactly the kind of vote of confidence that most shareholders like to see. Shares of the company have gradually sunk following the sale of its Alstyle apparel division to Gildan Activewear Inc (USA) (NYSE:GIL) in late-May, as the company faces what Mr. Walters described as “predatory pricing” challenges, among other headwinds. However, he believes the business products and apparel company is in a position to provide quality, competitively-priced products to its customers. Ennis pays out a quarterly dividend of $0.18, which amounts to an annual yield of 4.51%. Jim Simons’ Renaissance Technologies owned 894,100 shares of Ennis Inc. on June 30.

We’ll check out three more stocks with recent insider trading activity on the next page.

Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) Chairman Sells Some Shares

Douglas B. Given, M.D., Ph.D., the Chairman of the Board of Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR), disposed of 12,000 shares of the company on Friday at an average price of $6.72. Dr. Given is now left with a direct ownership stake of 70,000 shares, which includes restricted stock units subject to various vesting conditions.

Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) announced a collaboration with Spring Bank Pharmaceuticals, Inc. (NASDAQ:SBPH) a couple weeks ago, which will see its ARC-520 tested in combination with Spring Bank’s SB 9200 for the treatment of HBV. After preclinical trials, the agents will be integrated into Arrowhead’s ongoing MONARCH trial of ARC-520.

While Arrowhead’s shares are up by 8% this year, they’ve dipped by 9% this month after Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) announced earlier this month that it was dropping development of revusiran, an RNAi treatment. Arrowhead is also focused on the development of RNA interference treatments. Five investors in our database were long Arrowhead Pharmaceuticals on June 30, owning just 0.40% of its shares.

Chairman’s Trusts Unload 300,000 Shares of CSX Corporation (NYSE:CSX)

The Michael Ward Revocable Trust and Michael Ward GRAT #3, both of which CSX Corporation (NYSE:CSX) Chairman and CEO Michael Ward is the trustee of, sold off a combined 300,000 shares on Monday at a price of $30.97 per share. Mr. Ward now holds indirect ownership of 74,539 shares through the Michael Ward Revocable Trust, as well as direct ownership of 198,742 shares, and indirect ownership of 397,303 shares through the CSX Corporation Executive Stock Trust, and 14,872 shares through the CSX Corporation 401(k) Plan.

While CSX Corporation (NYSE:CSX) doesn’t see much room for growth in coal volumes in 2017, analysts are nonetheless moderately bullish on the company near-term, as it heads into a year of easier comps and as pricing improves. CSX also stated recently that it would “look hard” at its dividend in 2017. Its quarterly dividend has been unchanged for the past six quarters at $0.18, paying out an annual yield of 2.32%. Shares of CSX have posted 18% gains this year. Charles Paquelet‘s Skylands Capital trimmed its CSX position by 22% during the third quarter, leaving it with 291,700 shares.

IDT Corporation (NYSE:IDT) Co-Chairman Gets In On The Selling

Bill Pereira, the Co-Chairman of the Board of IDT Corporation, and CEO and President of IDT Telecom, unloaded 13,341 shares of IDT Corporation (NYSE:IDT) on Monday, at an average price tag of $17.34. Mr. Pereira is now left with direct ownership of 34,666 restricted stock units, which begin to vest on January 5, 2017. He also has indirect ownership of 2,866 shares through a 401(k) Plan.

The insider sale comes amid IDT Corporation (NYSE:IDT) surging to its 52-week high in recent weeks, which has pushed the stock’s year-to-date gains to over 50%. The telecom company has done a good job cutting SG&A expenses this year, with the figure coming in at $48.9 million during its fiscal fourth quarter, down from $54.1 million a year earlier. Adjusted EBITDA was also up by $0.5 million to $45 million for the company’s 2016 fiscal year. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors sold off its stake of 58,619 IDT shares during the third quarter.

Disclosure: None