Top Insider Trades: EMC Buys More VMware Stock and Ralph Lauren Has Another Sale

By Jonathan Moreland  JAN 03, 2013 10:50 AM

Plus, sales at Google and Continental Resources.


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 Wednesday, January 2, 2013 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.

EMC (NYSE:EMC), the data storage products and service corporation, has once again bought stock in cloud infrastructure and virtualization company VMware (NYSE:VMW), this time for $6,503,339. This is EMC's seventh purchase of VMware stock in three weeks: These purchases follow the announcement on December 4, 2012 that EMC and VMware would collaborate to develop VMware's big data and platform as a service cloud (PaaS) products into a new division of the company called Pivotal Initiative. Two Directors at holding company New Peoples Bankshares (NASDAQ:PEOP), Scott White and Harold Keene, both bought company stock, $2,365,524 and $2,307,014, respectively. Julien Patterson, a director of Bay Banks of Virginia (PINK:BAYK), another bank holding company, bought $1,100,002 worth of company stock. Dr. Phillip Frost MD, Chairman and CEO of pharmaceutical and diagnostics company Opko Health (NYSE:OPK), bought $478,224 of company stock.

The Lauren Family has again sold stock of Ralph Lauren (NYSE:RL), now with $14,788,979. The Lauren Family has been a consistent part of the sales list for the last month. Jeff Hume, Vice Chairman of Continental Resources (NYSE:CLR), sold $8,868,892 of company stock. Continental Resources is one of the Top 10 petroleum liquids producers in the US and is the largest leaseholder in the lucrative Bakken Play of North Dakota and Montana. John Doerr, a director of Google (NASDAQ:GOOG), sold $5,000,167. Like Ralph Lauren, Google has been on this sales list consistently for at least a month. 

At, 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: | Key to Insider Title and Trans Type Codes

Source: | 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.