Insider transactions can be the foundation of numerous trading strategies and signals. For example, we found that a strategy based on only top-ranked insiders buying or selling shares is the most successful with an average return per position of close to 5%. However, the mass of transactions makes it challenging to pick out the most relevant transactions that are the most indicative of a strong investing opportunity.
For that reason, TipRanks’ Daily Insider Transactions tool allows you to limit the transactions displayed to only the best-performing insiders and only informative transactions- this means that the buy/ sell was a deliberate choice and not just the exercising of existing company options. Check out the filters that we used to find the most interesting insider transactions in the last few days:
Hot insider stock 1: Celgene (CELG) – two days ago Michael D. Casey sold shares in global biotech Celgene worth over $1 million. The five-star insider now has close to $16 million invested in Celgene. And he isn’t the only one who is bullish. The stock has a strong buy analyst consensus rating with upside of 16% from the current share price to the average analyst price target. One analyst, Oppenheimer’s Leah R Cann reiterated his buy rating on CELG three days ago saying he was impressed by data from a recent study for the treatment of follicular lymphoma (FL)- a type of blood cancer- using Celgene’s Revlimid.
Hot insider stock 2: Flexion Therapeutics (FLXN)- this healthcare stock has only informative buy transactions and no informative sell transactions in the last year. Two days ago, director Mark Stejbach bought shares worth $20,000, and 16 days ago five-star President and CEO Michael Clayman purchased shares of over $86,000. He has $19 million invested in Flexion which develops and sells non-opioid pain therapies. The stock has received only buy ratings in the last year.
Hot insider stock 3: Pershing Gold Corp (PGLC)- five-star director Barry Honing made his second informative buy transaction of PGLC shares two days ago when he bought shares valued at $21,000 in the emerging Nevada gold producer. Pershing wants to fast-track the reopening of the Relief Canyon Mine which it says has proven and probable reserves of approximately 635,000 ounces of gold and 1.6 million ounces of silver.
Which mega-cap are insiders dumping?
We also wanted to look on the flip-side and see which stock insiders are selling fast. Using TipRanks’ stock screener, we found that struggling consumer goods retailer Procter & Gamble (PG) has one of the most negative insider confidence signal in the consumer goods sector.
In the last year there has only been one Informative Buy and over 65 separate Informative Sell transactions totaling over $150 million! Here we can see the insider confidence signal based only on the last three months is negative with insiders selling a whopping $17 million of PG shares in this timeframe alone:
Most recently Louvet Patrice, Group President, made a sale of shares worth over $4 million. All her PG transactions have been Informative Sell. The Street is also cautious. In the last three months, the stock has received 1 buy rating and 2 hold ratings while the average analyst price target of $88 translates into a potential downside of -1.45%.
Also of note: Nelson Peltz’s activist hedge fund Trian Fund Management- known for breaking up major companies- has now taken a $3.5 billion stake in Procter & Gamble. Will a director battle be next for this confused conglomerate? Watch this space.