In Insider Trades, Facebook's Sheryl Sandberg Sells Company Stock

By Josh Wolonick  MAR 25, 2013 12:35 PM

Plus, a purchase at Tetraphase Pharmaceuticals and a sale at Fabrinet.

 


Welcome to our daily round-up of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Friday, March 22, 2013.

Purchases: The American multinational financial services company Fidelity Management and Research (a.k.a. Fidelity Investments) bought 642,857 shares of Tetraphase Pharmaceuticals (NASDAQ:TTPH), worth $4,499,999. Tetraphase, a clinical stage biopharmaceutical company, develops various antibiotics for the treatment of life-threatening drug-resistant infections. The company had an IPO on Wednesday, March 20, ending the day with shares priced at $7, below the $10 to $12 range listed in the original IPO filing. As of now, the price remains a solid $7.

Andrew Silberfein, the President and CEO of New York-based Rouse Properties (NYSE:RSE), bought 15,000 shares of company stock for $252,900. Rouse owns and manages regional malls in the US, with 30 regional malls in the 19 states. On Friday, the company saw a rapid uptick in stock price near the end of the session, jumping from $16.75 at 3:20 p.m. EDT to a high of $17.30 before closing at $17.21. As of now, the price is up to $17.40 per share.

Sales: The private equity fund Asia Pacific Growth Fund III LP sold 2,900,000 shares of stock in optical packaging company Fabrinet (NYSE:FN), for a price of $38,874,500. Fabrinet provides optical packaging and precision electronic manufacturing services to equipment manufacturers of complex products like communication components, sensors, and industrial lasers. On March 15, the company announced a secondary public offering, underwritten solely by Morgan Stanley (NYSE:MS), of 3,800,000 ordinary shares offered by selling shareholders, priced at $14 per share. 

Bank holding company BankUnited (NYSE:BKU) saw two sales: The American investor Wilbur Ross's equity fund WL Ross & Co. sold 721,500 shares for $17,853,518, and Chairman, President, and CEO John Kanas sold 120,000 shares for $2,969,400. BankUnited, the primary holding of the company, has a Tier 1 Capital Ratio of 29.27%, meaning that 29.27% of its balance sheet can be considered core capital (i.e. equity shares, retained earnings, preference shares, and etc. This makes BankUnited among the most conservative banks in the world, as high Tier 1 Capital Ratio suggests that a bank could weather a coming financial crisis.

Facebook's (NASDAQ:FB) COO Sheryl Sandberg, in the news lately for her book Lean In: Women, Work, and the Will to Lead, sold 176,452 shares of company stock, worth $4,600,390. Today, the SEC has approved NASDAQ OMX Group's (NASDAQ:NDAQ) plan to compensate customers for up to $62 million in losses from Facebook's mishandled IPO last year.    

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
B
$4,499,999
2
BO
JB*
$1,030,823
3
CEO,CB,BO
B
$504,752
4
PR,CEO,DIR
B
$252,900
5
BO
JB*
$150,000
6
O
JB*
$138,191
7
VP,CFO
JB*
$78,399
8
DIR,BO
B
$62,075
9
DIR
B
$53,808
10
DIR
B
$52,144

 

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
JS*
$379,200,000
2
BO
JS*
$38,874,500
3
BO
JS*
$17,853,518
4
BO
K
AS
$10,273,211
5
DIR
S
$8,256,535
6
COO,DIR
AS
$4,600,390
7
VCB
AS
$3,243,603
8
CB,PR,CEO
JS*
$2,969,400
9
DIR
S
$1,770,858
10
VP
AS
$1,679,002

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

An important note from Jonathan Moreland, founder of Insider Insights:

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

Please note, however, that the lists above are strictly factual; they are 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.

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.

Jonathan Moreland is also the author of "Profit From Legal Insider Trading."

Follow me on Twitter: @JoshWolonick and @Minyanville
No positions in stocks mentioned.