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Insider Trading: KKR'S Buck Holdings Sheds $1.8 Billion Worth of Dollar General

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Entertainment provider RLJ Acquisition and mortgage outsourcer PHH Corp. were also heavily sold while Wausau Paper was purchased.

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In a victory for common sense, the trading behavior of company executives, directors, and large shareholders in the stocks of firms they're registered "insiders" at have been proven profitable to monitor by both academic studies and (more importantly) the experience of your fellow professional investors.

Below are lists of the top 10 mainly open-market insider purchases and sales filed at the Securities and Exchange Commission Friday, October 5, 2012 as ranked by dollar value.

Please note, however, that these are factual lists, 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.

KKR's (NYSE:KKR) Buck Holdings, the private-equity group that took Dollar General (NYSE:DG) private in 2007 and subsequently drove its 2009 IPO, has unloaded over $18 billion in shares according to recent SEC filings. The IPO was for $21/share and today the shares are trading over $51.

Entertainment provider RLJ Acquitision (OTR:RLJA) and mortgage outsourcer PHH Corp. (NYSE:PHH) were also heavily sold.

Investment firm Fir Tree partners sold over $18.5 million worth of RLJ, which is chaired by Robert L. Johnson, founder of Black Entertainment Television. RLJ recently completed two media acquisitions related to digital and video content.

Asset manager Scopia Fund sold over $15 million worth of PHH Corp. The fund had made significant purchases in the company in the last quarter of 2011 and again in the first quarter of 2012.

Other notable insider moves included a $2 million purchase of Wausau Paper (NYSE:WPP) made by Starboard Value. In aggregate the activist investor controls 13.9% of the specialty paper company. It also has a 13.3% stake in Office Depot (NYSE:ODP)

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.


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes


Source: InsiderInsights.com | Key to Insider Title and Trans Type Codes

Editor's note: Jonathan Moreland is the founder of Insider Insights and author of "Profit From Legal Insider Trading."
No positions in stocks mentioned.
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