Recently, various executives have taken part in insider trading activity in Valeant Pharmaceuticals Intl Inc (NYSE:VRX), American Airlines Group Inc (NASDAQ:AAL), and Starbucks Corporation (NASDAQ:SBUX). Let’s take a closer look.
Valeant Pharmaceuticals Intl Inc
Following the 90% loss in Valeant’s value in the past 10 months, newly-crowned CEO Joseph Papa bought 202,000 Valeant shares in a single transaction dated June 10, valued at $4,944,960. The CEO currently owns 2,442,199 shares, worth $58,075,492.
Joseph Papa has been the CEO since May 2, replacing Michael Pearson who was removed from the position. Valeant is currently one of the most talked-about companies in the market due to the several crises it is facing, including price fixing and fraud allegations. The company registered a net loss of $373,7 million on the first quarter (1.08 per diluted share) and a $30 billion debt. In order to turn itself around, the company is selling assets to obtain cash to reduce the debt. Papa’s biggest challenge is reducing the weight of the debt and making the company profitable again. However, his efforts still aren’t satisfying since the biotech company lost 37.3% in market value since he stepped into the company.
This enigmatic transaction made the market wonder if the company has reached an entry point and the stock price will only go up from now on, or if this is just a move to turn analysts and investors bullish again.
According to TipRanks.com, which measures corporate insiders’ success based on their transactions, Joseph Papa has an average return of 2.3% and a 33% success rate. Papa is ranked #15,351 out of 35,612 corporate insiders.
American Airlines Group Inc
Director Richard Schifter acquired 3,000 shares in a $18,656 transaction dated June 13, marking a 19% increase in his stake of the company. Schifter now has 18,656 shares in his hands, worth $593,260. According to TipRanks.com, Richard Shifter has an average return of 6.3% and a 33% success rate. Schifter is ranked #13,148 out of 35,612 corporate insiders.
Director Myron Ullman unloaded 20,000 shares in a single transaction valued at $1,109,200, dated June 09, marking a 58,8% divestment in the comapany. Following the transaction, Ullman holds 14,000 shares, valued at $778,120.
According to TipRanks.com, Myron Ullman a has an average return of -24.9% and a 31% success rate. Schifter is ranked #33,618 out of 35,612 corporate insiders.