Top Insider Trades: Sheryl Sandberg Sells Additional $4.5 Million in Facebook Stock; Insiders at BlackRock and Bank of America Buy

By Josh Wolonick  APR 23, 2013 9:35 AM

Plus, a purchase at Guidance Software.

 


Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside sales and purchases filed with the SEC on Monday, April 22, 2013.

Purchases: Thomas Montag, a Director of independent investment management firm BlackRock (NYSE:BLK), bought 5,000 shares of company stock for $1,243,213. Montag is also a Co-COO of Bank of America (NYSE:BAC). On April 16, the company reported an increase in quarterly profit from $572 million in fiscal Q1 2012 to $632 million in fiscal Q1 2013. The higher profit is in part a result of more investors buying into the company's high fee stock funds. The company's CEO, Laurence Fink said this was due to low yield on bonds and suspicion that interest rates may increase. The company's stock price is up 31.57% since this time last year.

The Naples, Florida-based hedge fund RGM Capital bought 37,491 shares of digital investigative solutions company Guidance Software (NASDAQ:GUID) for $375,101. The company's EnCase software allows users to search, collect, and analyze electronic information for addressing matters of human resources, litigation, allegations of fraud, and suspicious network activity. Since last year the company's stock price has increased 10.56%, despite being down 13.34% year-to-date. 

David Yost, a Director of Bank of America, bought 20,000 shares of company stock for $230,282. The stock's value has increased by 40.19% since this time last year, but has decreased 6.69% since last month, in part due to disappointing Q1 2013 earnings results, with revenue of $23.5 billion and the net income tally of $2.6 billion both missing analyst estimates, plus $881 million in litigation fees for Q1 alone. In a bright spot of the earnings report, the company had an increase in net interest margin, while there has been a trend of the figure decreasing for the past several quarters at many competitors of BAC, including Wells Fargo (NYSE:WFC), JPMorgan Chase (NYSE:JPM) and US Bancorp (NYSE:USB). Citigroup (NYSE:C) is the only other bank to report higher Q1 NIM.

Sales: Sheryl Sandberg, the COO of Facebook (NASDAQ:FB), sold 176,452 shares of company stock for $4,550,376. Facebook won't report its Q1 2013 earnings until 2013, but positive news about mobile ad revenue at the social network helped the stock's price rally 0.93% yesterday. Goldman Sachs (NYSE:GS) published a report estimating that mobile ad revenue for FB will come in between $1.4 to $1.92 billion, which is at the high end of most analyst expectations. For context, Facebook reported total revenue of $1.59 billion for Q4 2012.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
B
$1,998,421
2
DIR
AB
$1,987,683
3
DIR
B
$1,243,213
4
BO
JB*
$1,050,000
5
BO
B
$375,101
6
BO
B
$304,780
7
CB,CEO,BO
B
$244,770
8
DIR
B
$230,282
9
DIR
B
$62,505
10
BO
B
$51,800

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
BO
K
AS
$13,016,031
2
COO,DIR
AS
$4,550,376
3
PR,CEO
S
$4,424,720
4
PR,CEO,DIR
AS
$3,720,403
5
CB,DIR
AS
$3,249,592
6
DIR,BO
S
$2,906,850
7
BO
S
$2,183,039
8
CB,CEO,DIR
AS
$1,897,791
9
HR
S
$1,132,710
10
CB,CEO,BO
JS*
$999,000

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.