Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

In Insider Trading, AOL Sees a Purchase and Phillip Frost Buys Shares of Ladenburg Thalmann

By

Plus, there was a purchase at Capstead Mortgage and a sale at McKesson Corporation.

PrintPRINT
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, May 29, 2013.

Purchases: Phillip Frost, a Director of Ladenburg Thalmann Financial Services (NYSEMKT:LTS), bought 800,000 shares of company stock for $20 million, while Director Saul Gilinski bought 20,000 shares for $500,000. Ladenburg Thalmann engages in independent brokerage and advisory services, investment banking, equity research, institutional sales and trading, and asset management services through its subsidiaries. Frost is also the CEO and Chairman of Opko Health (NYSE:OPK) and serves as a director of PROLOR Biotech (NYSEMKT:PBTH) (which Opko is in the middle of acquiring), YM Biosciences (TSE:YM), and liquor company Castle Brands (NYSEMKT:ROX). On May 21, Ladenburg Thalmann announced an underwritten public offering of 4.6 million shares of Series A Preferred Stock for $25 per share, with gross proceeds expected to be $115 million. The offering was closed on May 24, and the company plans to use the proceeds to repay debt. The company's stock price is up 14.29% year-to-date and 10.34% since this time last year.

Frederic Reynolds, a Director of AOL (NYSE:AOL), bought 28,000 shares of the global Web services company stock for $959,308. AOL's business comprises online content and products and services that it markets to consumers, publishers, and advertisers. Reynolds previously served as the CFO of CBS Corporation (NYSE:CBS) and the CEO of of the Viacom Televisions Stations Group at Viacom Inc. (NASDAQ:VIAB) He also serves on the boards of Kraft Foods (NASDAQ:KRAFT) and Metro-Goldwyn-Mayer Studios Inc. On May 9, AOL became the first major company to require its entire sales team to be certified through the Digital Media Sales Certification Program that the Interactive Advertising Bureau (IAB) offers. As Marta Martinez, the Head of Sales at AOL said, "By certifying all our sales employees and ensuring that they have a deep understanding of the interactive advertising platforms, technologies, and capabilities that impact the industry, we are demonstrating our dedication to our clients and staying ahead of the curve." In technical analysis, shares of AOL's stock crossed below their 200-day moving average of $35.08 yesterday. Despite a tough last month, with the company's stock price down 10.71%, the current price of $34.27 is up 16.51% YTD and up 26.93% since this time last year.

Jack Biegler, the Chairman of the Board of self-managed real estate investment trust Capstead Mortgage (NYSE:CMO), bought 20,000 shares of company stock for $240,560. Capstead's business centers around investing in a leveraged portfolio of residential mortgage pass-through securities, which are almost exclusively adjustable-rate mortgage (ARM) securities issued by government sponsored firms like the Federal National Mortgage Association (Fannie Mae) (OTCBB:FNMA) and the Federal Home Loan Mortgage Corporation (Freddie Mac) (OTCBB:FMCC). On May 16, the company announced the completion of a 6,800,000-share public offering of 7.5% Series E Cumulative Redeemable Preferred Stock at $25 per share (the Series E stock is listed on the NYSE under the symbol "CMOPRE"). Three days earlier, the company announced the redemption of all 16,492,110 shares of its outstanding Series B Cumulative Convertible Preferred Stock at $1.26 per share. The redemption is set for June 13 and each share will be redeemed for $12.50; proceeds from the Series E offering will finance the redemption. Capstead's stock price has decreased 5.95% in the last month; it is up 8.89% YTD, and it is down 9.03% since this time last year.

Sales: At the American pharmaceutical and medical supplies company McKesson Corporation (NYSE:MCK), Chairman, President, and CEO John Hammergren sold 230,484 shares of company stock for $26,554,638 while Executive Vice President Paul Julian sold 116,930 shares for $13,471,798. The company conducts business in two segments, with Distribution Solutions distributing drugs, surgical supplies, and health and beauty care products, and Technology Solutions delivering enterprise-wide solutions to clients in patient care, finances, supply chain, software, and more. In 2011, Hammergren was the highest paid CEO in America, with total pay over $145 million (the majority in stock options). The year before, he was paid $51.8 million. On May 14, the company announced the nationwide debut of its McKesson Gives Back program, which recognizes and rewards physicians and their practices that provide pro bono health care to needy patients. The program was initially launched in a limited capacity in November 2012. On May 22, the company announced a quarterly dividend of $0.22, up from the company's usual $0.20 per quarter, increasing the annual dividend of the stock to $0.88 with a yield of 0.75%. The company's stock price is up 18.42% YTD and up 32.08% since this time last year.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
DIR,BO
JB*
$20,000,000
2
BO
JB*
$10,150,000
3
DIR,BO
B
$4,473,548
4
BO
B
$3,424,358
5
DIR
B
$1,318,096
6
DIR
B
$959,308
7
DIR
B
$614,000
8
DIR
JB*
$500,000
9
DIR
B
$334,949
10
DIR
B
$240,560

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
BO
JS*
$1,075,592,960
2
BO
JS*
$847,755,648
3
BO
JS*
$130,987,496
4
BO
JS*
$43,495,444
5
CB,PR,CEO
AS
$26,554,638
6
VP,PR
AS
$13,471,798
7
BO
S
$12,644,051
8
DIR
S
$1,642,253
9
VP,PR
S
$1,473,833
10
DIR
AS
$1,399,657

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
Position in OPK.
PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE