Top Insider Trades: Precision Castparts Buys Titanium Metals Stock, Following Acquisition

By Jonathan Moreland  JAN 11, 2013 12:30 PM

Plus, a purchase at HMA and sales at LML Payment and Sempra Energy.


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 Thursday, Jan. 10, 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.

In purchases, the Portland-based industrial goods and metal fabrication company Precision Castparts (NYSE:PCP), which manufactures parts for aerospace, industrial, defense, and automobile companies, bought $277,692,864 worth of stock in the titanium-based product manufacturer, Titanium Metals (NYSE:TIE), which focuses primarily on the aerospace industry. In November 2012, it was announced that Precision Castparts would buy Titanium Metals for $2.9 billion, and the deal was completed on Tuesday. The $7 billion hedge fund Glenveiw Capital bought $24,564,862 of stock in Health Management Associates (NYSE:HMA). Donald Wilson Jr., a 10% owner of SCG Financial Acquisition Corp. (NASDAQ:SCGQ), bought $23,544,500 of company stock.

In sales, Don Choquer, a Beneficiary Owner of financial payment processor LML Payment Systems Inc. (NASDAQ:LMLP), sold $18,214,527 of company stock. Debra Reed, the Chairman and CEO of energy services company Sempra Energy (NYSE:SRE), sold $1,518,199 of company stock, and Vice President Joyce Rowland sold $871,730.  At ExlService Holdings (NASDAQ:EXLS), which holds outsourcing company EXL Service, Co-Founder and Chairman Vikram Talway sold $1,200,789 worth of company stock. The W.K. Kellogg Foundation Trust, the seventh largest philanthropic foundation in the US, sold $752,400 worth of Kellogg (NYSE:K) stock.

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.