The directors of a company tend to have a unique inside view into the business, so when directors make major buys, investors are wise to take notice. Presumably the only reason a director of a company would choose to take their hard-earned cash and use it to buy stock in the open market, is that they expect to make money — maybe they find the stock very undervalued, or maybe they see exciting progress within the company, or maybe both. So in this series we look at the largest insider buys by company directors over the trailing six month period, one of which was a total of $737K by Steven R. Altman, Director at Ubiquiti Networks Inc (NASD: UBNT).
Looks to me that there has been net outflow of stock from insiders.
Duma, shame on you, you know as well as I do that there is ALWAYS a net outflow of stock from insiders, but it means nothing. It’s insider purchases that are rare, and meaningful.
Looks to me that there has been net outflow of stock from insiders.
Still think insiders know best?
Hi Duma,
2 of the 3 sales you referenced were planned sales which means, when they first got their options they had to elect to sell at a certain date and a certain time…so how they have. That does not mean they have no conviction in the company and of course, depends upon when they made that election. (I’m a bit fuzzy on the details here.)
The last one seems to suggest that this was some kind of payment to the new CFO, maybe a bonus for joining the company or some such event, again, not indicative necessarily that he has no conviction in the company.
I could be wrong about this and if so, I hope one of the pros sets both of us straight. Pretty much, insider sales are much less telling than insider buys on the open market. Mykie
