Insider Trading: Two Insiders Sell Facebook Stock, Three Buys at Tetraphase Pharmaceuticals

By Josh Wolonick  MAR 28, 2013 9:32 AM

Plus, purchases at US Auto Parts Network and Apache Corporation.

 


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 Wednesday, March 27, 2013.

Purchases: Tetraphase Pharmaceuticals (NASDAQ:TTPH), which had a middling IPO on March 20 (the stock price hovered around $7.00), had three insider purchases filed yesterday. Skyline Venture Partners Qualified Purchaser Fund bought 681,012 shares for $4,767,084, venture capital firm CMEA Ventures bought 642,857 shares for $4,499,999, and Excel Medical Fund bought 496,121 shares for $3,472,847. The company's primary product is eravacycline, a fully synthetic derivative of the antibiotic tetracycline designed for the treatment of multi-drug resistant infections.

US Auto Parts Network (NASDAQ:PRTS) saw two insider purchases, with co-founder and former CEO Mehran Nia buying 1,034,482 shares for $1,499,999 and co-founder and current Director Sol Khazani buying 344,827 shares for $499,999. US Auto Parts operates as an online retailer of auto parts, mostly for the exterior of cars, in the US, Canada, and the Philippines. The company announced today that it is entering a common stock purchase agreement with William Blair & Co, LLC. The company will sell 2,050,000 shares at the price of $1.09 per shares, for proceeds of around $2.2 million, which will be used to reduce its revolving borrowing under its credit agreement with JPMorgan Chase (NYSE:JPM). The transaction is expected to close on April 3.

Randolph Ferlic, a Director of independent energy company Apache Corporation (NYSE:APA), bought 10,000 shares of company stock for $744,782. Apache explores for, develops, and produces natural gas, crude oil, and natural gas liquids, with interests in the US, Canada, Egypt, Australia, Argentina, and off hore of the UK.

Sales: Facebook (NASDAQ:FB) saw two sales, with Vice President, Secretary, and General Counsel Theodore Ullyot selling 51,270 shares for $1,307,001 and CTO Michael Schroepfer selling 47,143 shares for $1,206,861. Congress is considering a new Internet sales tax that would compel ecommerce companies to collect sales tax from shoppers who reside in states where the company itself has no physical presence. Facebook, along with fellow ecommerce businesses like eBay (NASDAQ:EBAY) and Oracle (NASDAQ:ORCL), is obviously against the ruling. Ironically, Amazon (NASDAQ:AMZN) supports the new tax as it already pays a sales tax in many states where it has a physical presence.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
DIR
AB
$11,529,373
2
BO
JB*
$4,767,084
3
BO
JB*,B
$4,499,999
4
BO
JB*
$3,472,847
5
BO
JB*
$1,499,999
6
DIR
B
$744,782
7
DIR
JB*
$499,999
8
DIR
B
$409,422
9
O
B
$264,000
10
CEO,CB,BO
B
$171,604

 
            ollar Value
1
BO
K
AS
$5,433,660
2
DIR
AS
$4,084,725
3
DIR
S
$2,373,002
4
O
P
S
$2,215,983
5
VP
S
$2,015,980
6
DIR
S
$1,900,000
7
DIR
S
$1,643,121
8
CEO,DIR
S
$1,312,910
9
VP,GC,SEC
AS
$1,307,001
10
CTO
AS
$1,206,861

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.