In Insider Trading, Carl Icahn Ups His Stake in Herbalife and the CEO of Starbucks Sells Shares

By Jonathan Moreland  MAR 08, 2013 10:10 AM

Plus, purchases at Tiffany, Opko Health, and MGIC Investment; sales at Jazz Pharmaceuticals, Estee Lauder, and Monster Beverage.

 


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, March 7, 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 insider purchases, Carl Icahn, a Beneficiary Owner of network marketing company Herbalife (NYSE:HLF), bought $82,747,144 worth of the controversial company's stock, raising his stake to 15.55% and increasing pressure on his rival Bill Ackman's short bet. At jewelry company Tiffany & Co. (NYSE:TIF), Beneficiary Owner Qatar Investment Authority bought $32,935,206 worth of company stock. Phillip Frost, the Chairman and CEO of diagnostics and pharmaceutical company Opko Health (NYSE:OPK), bought $321,360 worth of company stock. There were two purchases at mortgage insurance company MGIC Investment Corp. (NYSE:MTG), with Chairman and CEO Curt Culver and Vice President and CFO Jon Lauer each buying $257,500 in company stock.

In insider sales, Howard Schultz, the President, Chairman, and CEO of Starbucks (NASDAQ:SBUX), sold $57,126,768 of company stock. At specialty biopharmaceutical company Jazz Pharmaceuticals (NASDAQ:JAZZ), Director Patrick Enright sold $46,624,000. Ronald Lauder, the Chairman of skin care, makeup, fragrance, and hair products company Estee Lauder (NYSE:EL), sold $33,030,832 of company stock. At energy drink company Monster Beverage (NASDAQ:MNST), the Vice Chairman and President sold $22,409,992, while the Chairman and CEO Rodney Sacks sold $22,405,014 of company stock.

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.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
B
$82,747,144
2
BO
B
$32,935,206
3
BO
B
$1,548,180
4
CEO,CB,BO
B
$321,360
5
BO
B
$304,852
6
CB,CEO,DIR
B
$257,500
7
VP,CFO
B
$257,500
8
DIR
JB*
$256,200
9
DIR
B
$229,805
10
DIR
B
$193,500

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

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
CB,PR,CEO
S
$57,126,768
2
DIR
JS*
$46,624,000
3
CB,BO
S
$33,030,832
4
VCB,PR,DIR
S
$22,409,992
5
CB,CEO,DIR
S
$22,405,014
6
BO
S
$16,456,329
7
PR,CEO,DIR
AS
$16,075,050
8
CEO,DIR
S
$10,494,704
9
VCB,DIR
S
$10,494,079
10
BO
K
AS
$9,210,045

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.