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Insiders at Altria and Genomic Health Buy Shares While Google Sees a Sale

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Plus, there were purchases at NexPoint Credit Strategies Fund and Forbes Energy Services.

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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 Friday, May 24, 2013.

Purchases: Felix Baker, a Director of molecular diagnostics company Genomic Health (NASDAQ:GHDX), bought 79,417 shares of company stock for $2,932,709. Genomic Health specializes in the development and commercialization of genomic-based lab services that are able to analyze the underlying biology of cancer, allowing patients and their doctors to make individualized decisions about treatment. Last Tuesday, May 21, the company announced that the results of 10 studies will be presented at the American Society of Clinical Oncology from May 31 to June 4. Included will be results for tests involving the company's Oncotype DX breast cancer test for use in detecting other kinds of cancers and evaluations of other attempts to detect prostate and breast cancers using genetic means. In the last month, the company's stock price has increased 22.92%; it has increased 35.83% year-to-date, and 7.06% since this time last year. A major drop in value during November 2012 was made up for with a big uptick in price when the company announced the launch of Oncotype DX.

James Dondero, a portfolio manager at NexPoint Credit Strategies Fund (NYSE:NHF), bought 123,216 shares of company stock for $999,996. NexPoint is a non-diversified, close-ended management investment company that aims to provide its clients with both current income and capital appreciation through investing in secured and unsecured floating and fixed rate loans, bonds, and other debt obligations, as well as equity and structure products. On May 1, the company announced it would be increasing its dividend by 7%, from $0.042 per share to $0.045, payable today to shareholder of record from April 30 and before. The stock offers a monthly dividend to investors. The company's stock price is up 22.44% YTD, and it is up 32.2% since this time last year.

Dinyar Devitre, a Director of cigarette holdings company Altria (NYSE:MO), which owns Philip Morris USA, bought 26,700 shares of company stock for $988,965. Devitre also serves a Director of payment services company Western Union Company (NYSE:WU) and medical accounting company Emdeon, which was acquired by The Blackstone Group (NYSE:BX) in 2011. On May 16, the company reaffirmed its outlook for fiscal year 2013, restating an expected 2013 earnings outlook of $2.49 to $2.55 per share, adjusted to be $2.35 to $2.41 per share; the consensus analysts estimate is $2.40 per share. Altria offers a dividend of $0.44 per share per quarter, yielding 4.71%. The stock's price has increased 18.86% YTD, and it has increased 16.38% since this time last year.

Holding company Steel Excel (OTCMKTS:SXCL), which focuses on capital redeployment and identifying new business operations, bought 175,791 shares of independent oil field services contractor Forbes Energy Services (NASDAQ:FES) for $630,380. Forbes Energy provides its clients in the oil and natural gas drilling and production businesses with a range of well site services, including fluid hauling, fluid disposal, well maintenance, tubing testing, and plugging and abandonment services. On May 16, the company announced Q1 2013 earnings, with a loss of $0.13 per share on revenue of $101.7 million, compared to a loss of $0.22 per share on revenue of $107 million. The company also saw an increase year-over-year in gross profit, from $21.6 million to $24 million.

Sales: Eric Schmidt, the Executive Chairman of Google (NASDAQ:GOOG), sold 80,000 shares of company stock for $69,897,064. Schmidt has been selling occasionally since his major sale of 3.2 million shares, worth $2.5 billion, in February (that was 42% of his total stake). With current controversy surrounding Apple (NASDAQ:AAPL) and Google's taxes in Europe, Schmidt addressed concerns on BBC Radio 4 yesterday, saying, "What we are doing is legal...I view that that you should pay the taxes that are legally required. It's not a debate. You pay the taxes." There is European law that a company can sell into all 27 European Union countries even if it only has one corporate form in the 27. Google sells into all EU countries through its Ireland office. The company's stock price is up 25.68% YTD, and it is up 50.3% since this time last year.

Insider Purchases
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
DIR,BO
B
$2,932,709
2
DIR
B
$1,411,077
3
O
B
$999,996
4
DIR
B
$988,965
5
DIR
B
$733,821
6
BO
B
$630,380
7
PR,DIR
JB*
$300,000
8
CEO,CB,BO
B
$257,882
9
BO
B
$233,506
10
CFO
B
$144,860

Insider Sales
#: Filer Name Insider Titles Company Name Ticker Trans
Type
Dollar Value
1
CB,DIR
S
$69,897,064
2
DIR,BO
JS*
$45,411,840
3
CB,DIR,BO
S
$20,819,446
4
DIR
S
$20,661,000
5
CEO,DIR
S
$10,861,249
6
BO
S
$7,748,409
7
BO
S
$7,245,000
8
VP,CIO
S
$3,203,200
9
DIR
S
$2,563,225
10
CB,CEO,DIR
S
$2,297,200

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.
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