Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Tuesday, May 28, 2013.
Purchases: Reuben Mark, a Director of outdoor lifestyle specialty retailer Cabela's Incorporated ( CAB ), bought 5,000 shares of company stock for $336,750. Through its multi-channel retail business, consisting of Retail and Direct segments, the company markets and sells hunting, fishing, camping, and other outdoor gear. The company has 44 stores across the US and Canada, and has plans to open 13 more by the end of 2014. Mark previously served as Chairman and CEO of Colgate-Palmolive ( CL ), as well as Director for Time Warner ( TWX ), Pearson PLC ( PSO ), and Citigroup ( C ). A full third of Cabela's business comes from the sale of guns and ammunition; the gun control debate that followed the November 30 Sandy Hook tragedy last year provided a boon to most businesses that sell guns, including Cabela's and its competitors Big 5 Sporting Goods (BGFV), Dick's Sporting Goods (DKS), and Hibbett Sports (HIBB), with consumers looking to buy weapons before tighter regulations were implemented. Cabela's has outperformed all of those competitors since mid-2012, and the stock is up 60.31% year-to-date, 82.87% since this time last year, and 401.72% since this time five years ago.
(For more on so called "death stocks," read: 6 Stocks to Die For: Making a Killing in Caskets, Funerals, and Cemeteries ).
Melvin Payne, the CEO of death care services and merchandise company Carriage Services (CSV), bought 15,000 shares of company stock for $252,684. Operating in two segments, funeral home operations and cemetery operations, the company operates 167 funeral homes in 26 states and 33 cemeteries in 12 states. On May 7, the company announced record results for Q1 2013, with earnings per share of $0.32, up 18.5% year-over-year, and revenue of $58.1 million, up 13.2%. Carriage Services and its competitors Service Corporation (SCI) and Stewart Enterprises (STEI) are having an excellent day with down markets; while the Dow Jones Industrial Average (INDEXDJX:.DJI) is down 0.81% and the S&P 500 (INDEXSP:.INX) is down 0.85%, Carriage Services is up 5.91%, Service Corporation is up 7.78%, and Stewart Enterprises is up 34.14%. Additionally, Service Corporation announced that it would acquire Stewart Enterprises for over $1 billion. Carriage Services is up 60.15% YTD, and it is up 160.41% since this time last year.
The entrepreneur and investor Ellen Siminoff, a Director of information technology company SolarWinds (SWI), bought 5,000 shares of company stock for $202,950. The company designs, develops, markets, sells, and supports enterprise information technology and infrastructure management software for IT specialists in a wide range of companies and organizations. Siminoff was a founding executive and Senior Vice President of Yahoo (YHOO), in charge of business and corporate development, small business relations, and the entertainment segment at the company from 1996 to 2002. Yesterday, May 28, SolarWinds announced the close of its acquisition of network monitoring company N-able, which will broaden the company's remote monitoring and management (RMM) offerings to its clients. The company's stock price has decreased 19.96% YTD and 12.76% since this time last year.
Sales: The global investment management firm Fortress Investment Group LLC (FIG) sold 1,100,721 shares of commercial real estate financial services company Walker & Dunlop (WD) stock, for $20,957,728. Walker & Dunlop originates, sells, and services a portfolio of commercial real estate financing products; its clients are owners and developers of commercial real estate. On May 22, the company announced that it had provided a 30-year, $12,400,000 Fannie Mae refinance loan for Silvercrest Garner, an independent living facility in Davenport, Iowa. The company's stock price is up 16.83% YTD, and it is up 62.61% since this time last year.
Frost Phillip Md
Payne Melvin C
Siminoff Ellen F
Tabor A Wellford
Helmerich & Payne
Schmidt Eric E
Walker & Dunlop
Epl Oil & Gas
Huntsman Jon M
Alon Israel Oil
Alon Usa Energy
Carrion Richard L
Tredwell Daniel P
An important note from Jonathan Moreland, founder of Insider Insights :
In a victory for common sense, it has been proven profitable -- by both academic studies and (more importantly) the experience of your fellow professional investors -- to monitor the trading behavior of company executives, directors, and large shareholders in the stocks of firms of which they're registered as "insiders."
Please note, however, that the lists above are strictly factual; they are not buy and sell recommendations. Dollar value is only one metric to assess the importance of an insider transaction, and, frankly, often not even the most important metric that determines if an insider transaction is significant.
At InsiderInsights.com, we find new investment ideas just about every day using these and more intricate insider screens to determine where we should focus our subsequent fundamental and technical analysis. And while stocks don't (or shouldn't) move up or down based on insider activity alone, insiders tend to be good indicators of when real stock-moving events like earnings surprises, corporate actions, and new products may be in the offing.
Jonathan Moreland is also the author of " Profit From Legal Insider Trading."