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In Insider Trading, Michael Dell Makes Purchase and Sale in Preparation for Buyout

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Plus, purchases at Amedisys and Nexpoint Credit Strategies Fund, and a sale at Engility Holdings.

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Welcome to our daily roundup of top insider trades. Here's a look at the most significant inside purchases recently filed with the SEC.

Notable Purchases:
  • Michael Dell, Founder, Chairman, and CEO of global information technology company Dell (NASDAQ:DELL), bought 2,964,869 shares of company stock for $41,152,380. Dell also appears on the insider sales list below.
  • The investment adviser KKR Asset Management bought 186,013 shares of home health care company Amedisys (NASDAQ:AMED) for $3,264,482.
  • James Dondero, Portfolio Manager of non-diversified, closed-end management investment company Nexpoint Credit Strategies Fund (NYSE:NHF), bought 159,839 shares of company stock for $1,253,138.
Notable Sales:
  • Michael Dell sold those same 2,964,869 shares that he purchased for the same price he paid, $41,152,380. According to the footnotes of the Form 4 Dell filled with the SEC, the transaction represents shares "held in trusts for the benefit of the children of Mr. Dell and his wife." It also stated, "On October 21, 2013, the reporting person purchased all of the shares held by the trusts and acquired direct beneficial ownership thereof." So, Michael Dell transferred funds from trusts for his family into his personal ownership. As Jonathan Moreland described it to us, "It would seem that Mr. Dell is preparing for the buyout, and likely making some moves for tax considerations."
  • The privately owned hedge fund sponsor Abrams Capital sold 654,583 shares of Engility Holdings (NYSE:EGL) for $20,820,826. Engility provides systems engineering services, training, program management, and operational support for the US government.
For more insider trades, see the charts below.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
CB,CEO,DIR
JB*
$41,152,380
2
BO
JB*
$3,500,003
3
BO
B
$3,264,482
4
O
JB*
$1,253,138
5
O
B
$1,120,555
6
DIR
B
$990,000
7
DIR
JB*
$674,985
8
O
B
$625,780
9
DIR,BO
B
$521,628
10
O
B
$520,472

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
CB,CEO,DIR
S
$41,152,380
2
BO
S
$20,820,826
3
DIR,BO
JS*
$10,465,698
4
CEO,DIR
S
$10,251,465
5
BO
S
$9,264,315
6
BO
JS*
$9,082,687
7
BO
S
$7,807,000
8
DIR
JS*
$6,047,250
9
BO
K
AS
$4,536,246
10
CB,DIR,BO
AS
$3,840,001

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."
No positions in stocks mentioned.
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