Insiders at Apple Inc. and Google Inc Sell Shares

By Josh Wolonick  JUN 27, 2013 10:53 AM

Plus, there were purchases at SPX Corporation and Evolving Systems Inc, and a sale at Diamondback Energy Inc.

 


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 Wednesday, June 26, 2013.

Notable Purchases

Relational Investors, the San Diego, California-based activist hedge fund, a Beneficiary Owner of global, multi-industry manufacturer SPX Corporation (NYSE:SPW), bought 232,103 shares of company stock for $16,502,735. SPX, based in Charlotte, North Carolina, predominantly sells it specialty products, like pumps, valves, cooling and heating equipment, broadcast antenna systems, and many more, to developing and emerging markets. Over the last month, the stock's price, now $72.01, has lost 7.45%, though it has gained 2.65% YTD and 12.01% since this time last year.

Karen Singer, a Beneficiary Owner of software solutions company Evolving Systems Inc (NASDAQ:EVOL), bought 31,834 shares of company stock for $208,513. Singer is a successful small-cap telecom investor whose husband, Gary Singer, spent over two years in prison after pleading guilty to 21 felony counts of insider trading. Evolving Systems develops, deploys, maintains, and integrates software solutions for an array of operations support systems in the wireless, wireline, and cable markets. The company's stock price, currently $6.64, is up 1.82% in the last month, up 8.77% in the last six months, and up 23.16% since this time last year.

Notable Sales

The independent oil and natural gas company Diamondback Energy Inc (NASDAQ:FANG) saw two major insider sales by Beneficiary Owners, with investment advisor Wexford Capital LP selling 4,048,219 shares for $135,048,592 and DB Energy Holdings LLC selling 3,812,052 shares for $127,170,056. On June 19, Diamondback announced the pricing of an underwritten secondary public offering of 6 million shares at $34.75 per share; the offering ended on June 24. The company's stock price, currently $33.69 and down 2.91% in the last month, has seen 74.27% growth YTD and is up 90.41% since this time last year.

Eric Schmidt, the Chairman of Google Inc (NASDAQ:GOOG), sold 87,949 shares of company stock for $76,479,619, continuing Schmidt's long-term plan to diversify his assets. On June 26, it was reported that Google has taken the lead on Apple Inc. (NASDAQ:AAPL) in terms of enterprise value. Subtracting cash on hand from each company's market capitalization (that's $145 billion in cash for Apple and $45 billion for Google), the enterprise value of Google is $241 billion, higher than Apple's $233 billion. In the last month, Google's stock price, now $881.42, is up .93% and has increased 24.6% YTD and 54.83% since this time last year.

Apple saw two insider sales, with Vice President of Legal and Government Affairs and General Counsel Bruce Sewell selling 37,172 shares for $14,944,831 and Vice President of Operations Jeffrey Williams selling 36,819 shares for $14,792,265. With the baffling amount of attention Apple gets, people are wondering what these sales mean. Are Apple higher-ups losing faith in the company? There's no answer for that. But Sewell and Williams are taking home a pretty nice chunk of change -- perhaps they just needed the money?

A new report from Digitimes claims that Apple will be splitting orders to new suppliers and will rely not upon one to two major manufacturers, like Foxconn (OTCMKTS:FXCNY), for example, but at least two to three instead. This move to split orders to suppliers will not happen immediately, but may eventually help Apple develop greater flexibility and increased profits with an optimized supply chain.

In the last month, Apple's stock price, $398.20 at the time of this writing, has decreased by 10.25% in the last month, 24.92% YTD, and 30.45% since this time last year.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
B
$16,502,735
2
BO
B
$2,300,806
3
CEO,DIR
JB*
$233,962
4
BO
B
$208,513
5
CEO,CB,CIO,DIR,BO
B
$199,904
6
CEO,CB,BO
B
$138,332
7
DIR
B
$128,961
8
LO,GC
JB*
$116,997
9
COO,DIR
B
$102,800
10
BO
B
$85,811

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
JS*
$135,048,592
2
BO
JS*
$127,170,056
3
CB,DIR
AS
$76,479,619
4
DIR,BO
JS*
$65,111,416
5
VP,GC,SEC
AS
$14,944,831
6
VP
AS
$14,792,265
7
BO
S
$12,463,098
8
BO
S
$7,291,218
9
BO
S
$7,265,510
10
DIR
S
$5,925,769

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.