Top Insider Trades: A Purchase in Cloud Computing, and Major Sales of Simon Property Group

By Jonathan Moreland  DEC 17, 2012 12:00 PM

Plus: A purchase at Cumulus Media and the Garmin CEO sells again.

 


In a victory for common sense, the trading behavior of company executives, directors, and large shareholders in the stocks of firms they're registered "insiders" at have been proven profitable to monitor by both academic studies and (more importantly) the experience of your fellow professional investors.

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Friday, December 14, 2012 as ranked by dollar value.

Please note, however, that these are factual lists, 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.

In purchases, EMC (NYSE:EMC), an American multinational corporation which sells data storage products and services, bought $6,423,813 of stock in VMware (NYSE:VMW). In a more traditional medium of communication, Crestview Radio, an LLC founded by private equity firm Crestview Partners, bought $3,564,072 worth of Cumulus Media (NASDAQ:CMLS) stock. Cumulus Media is the second largest owner and operator of AM and FM radio stations in the US. In 2010, Cumulus Media and Crestview Partners formed a strategic investment partnership in order to acquire smaller radio broadcasting companies. 

In sales, Melvin Simon sold $449,249,984 worth of Simon Property Group (NYSE:SPG) stock, while his brother Herbert sold $138,997,952 worth. The company is the country's largest real estate investment trust, predominantly owning malls and shopping developments. Melvin and Herbert Simon are two of the three brothers who founded the group (their brother David is Chairman and CEO). Fifth Third Bancorp (NASDAQ:FITB), a diversified financial services company that operates 15 affiliates, sold $265,732,048 worth of stock in Vantiv (NYSE:VNTV), which is a payment processing company that provides strategies and technologies to business and financial institutions. Vantiv began as a joint venture between Fifth Third Bank (one of Fifth Third Bancorp's subsidiaries) and Advent International, and became public recently, on March 22, 2012. Dr. Min H. Kao, CEO of GPS company Garmin (NASDAQ:GRMN), sold $21,554,032 worth of company stock. Last Wednesday he sold $44,752,772.

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.


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes

Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
No positions in stocks mentioned.