Cluster of Insider Selling at Well-Known Investment Bank, Plus Noteworthy Insider Buying at Four Other Companies

Numerous studies completed by reputable researchers and professors from top-tier universities have arrived at the conclusion that corporate insiders tend to earn abnormal returns when buying shares of their companies. Similarly, a high number of studies concluded that non-insiders can also achieve better returns by tracking insider trading activity.

Although some of studies may be viewed as outdated and somewhat irrelevant, the reasoning behind tracking insider trading activity remains as strong and durable today. As well-known investment guru Peter Lynch once said: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” Indeed, this line of thought still applies today, as it is hard to believe that insiders are investing their hard-earned money in their own company’s stock for reasons other than the fact that they anticipate price appreciation. For that reason, the following article primarily focuses on discussing fresh insider buying observed at several companies, as well as on discussing a cluster of insider selling.

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Two Important Executives at Transitioning Consumer-Products Company Buy Shares

Two of the most well-informed and influential executives at Newell Brands Inc. (NYSE:NWL) bought shares earlier this week. To begin with, Chief Executive Officer Michael B. Polk bought 7,500 shares at $49.68 apiece on Monday and 4,000 shares for $47.82 each on Tuesday. Following the two purchases, Mr. Polk currently holds a direct ownership stake of 334,169 shares. President Mark Tarchetti bought 12,436 shares on Monday at prices varying from $48.12 to $48.18 per share, a purchase that lifted his overall holding to 188,995 shares.

In mid-April of this year, the distributor of consumer and commercial products, previously known as Newell Rubbermaid, completed the acquisition of consumer products company Jarden Corporation. The newly-combined entity anticipates to achieve annualized cost synergies of $500 million over the next four years, driven by efficiencies of scales and new efficiencies in procurement. Newell Brands Inc. (NYSE:NWL), best known for its popular line of tupperware products, has seen the value of its shares advance by 9% since the start of the year. The company recently posted revenue of $3.95 billion, up from $1.53 billion recorded a year ago. Indeed, the increase reflected the Jarden acquisition completed in April. Charles Paquelet’s Skylands Capital reported ownership of 4,596 shares of Newell Brands Inc. (NYSE:NWL) in its 13F for the third quarter.

The next pages of this article will reveal some other insider trading observed at four other companies.

Cluster of Insider Buying at Equipment Services Company After Revealing Weak Results

Three different insiders at H&E Equipment Services Inc. (NASDAQ:HEES) bought shares this week. Board member Paul N. Arnold bought 5,000 shares on Tuesday at $12.82 apiece, lifting his overall holding to 53,078 shares. Furthermore, Chief Executive Officer John M. Engquist snapped up 17,000 shares on Monday for $14.07 each and 17,000 shares at $13.40 apiece on Tuesday. Mr. Engquist currently holds an aggregate of 2.82 million shares following the recent acquisitions. Last but not least, Chief Operating Officer and President Bradley W. Barber bought 6,626 shares on Monday at a price of $14.22 per share and 4,901 shares on Tuesday for $13.44 each. Mr. Barber currently owns 137,686 shares.

The cluster of insider buying comes shortly after the U.S. integrated equipment services company focused on heavy construction and industrial equipment released a rather disappointing third-quarter earnings report. H&E Equipment Services Inc. (NASDAQ:HEES)’s revenues for the quarter decreased by 11.6% year-over-year to $244.7 million, mainly reflecting the adverse impact of weather on the company’s operations. The company’s business experienced a short halt as constructions projects were temporarily delayed due to a flooding event in mid-August. The shares of H&E Equipment Services are 22% in the red this year. David Keidan’s Buckingham Capital Management owns 288,077 shares of H&E Equipment Services Inc. (NASDAQ:HEES) as of September 30.

Chairman of Tuesday Morning’s Board Buys Shares After Share Price Drop

One important member of Tuesday Morning Corporation (NASDAQ:TUES)’s boardroom bought a relatively large amount of shares this week. Terry L. Burman, the Chairman of the company’s Board of Directors, acquired 40,000 shares on Monday at prices between $4.92 and $4.95 per share. After the recent purchase, Mr. Burman currently owns 155,835 shares.

The off-price retailer specializing in selling deeply-discounted, upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts has seen its market capitalization drop by 28% since the start of the year. The company’s shares have performed quite poorly over the past six months, as the stock is 39% in the red in the past six-month period. Tuesday Morning Corporation (NASDAQ:TUES) operates 742 stores in 40 states as of September 30, down from 757 stores at the end of September 2015 due to the company’s strategy to improve store real estate. Meanwhile, the company’s net sales for the quarter that ended September 30 were $211.9 million, marking an increase of $9.6 million year-on-year. Comparable store stales for the quarter rose by 5.1% compared to the same period of the previous year. Steve Cohen’s Point72 Asset Management added a 350,100-share position in Tuesday Morning Corporation (NASDAQ:TUES) to its portfolio during the second quarter.

The final page of this article will discuss noteworthy insider trading recently observed at two other companies.

Insider at Webster Financial Boosts Ownership Stake

One member of Webster Financial Corporation (NYSE:WBS)’s Board of Directors also bought some shares this week. Board member William L. Atwell snatched up 4,000 units of common stock on Monday at a price tag of $40.11 per share. Mr. Atwell currently owns 15,888 shares after the recent purchase.

Webster Financial Corporation (NYSE:WBS) operates as a bank holding company and financial holding company of Webster Bank and various non-banking financial services subsidiaries, which provide financial services to individuals, families, and businesses mainly from New York to Massachusetts. In late October, the bank released its financial results for the third quarter, which fueled a further increase in the company’s share price. Webster Financial Corporation reported revenue of $246.6 million, which was up 7.5% year-over-year. The top-line growth reflected record levels of net interest income and non-interest income. The company’s net interest income was $180.2 million versus $168.0 million posted for the same period of the previous year. The shares of Webster Financial are up 8% year-to-date. Ken Fisher’s Fisher Asset Management reported the ownership of 2.55 million shares of Webster Financial Corporation (NYSE:WBS) through the latest round of 13F filings.

Cluster of Insider Selling at Well-Known Investment Bank

The final part of this insider trading article will discuss a cluster of insider selling observed at Piper Jaffray Companies (NYSE:PJC). To start with, Christine N. Esckilsen, the Chief Human Capital Officer and Assistant General Counsel at Piper Jaffray, discarded 2,000 shares on Tuesday at prices varying from $56.70 to $57.20 per share. Ms. Esckilsen currently holds an aggregate of 8,966 shares following the recent sale. Jeffrey P. Klinefelter, Global Head of Equities, liquidated 10,000 shares on Monday at prices that ranged from $56.00 to $56.55 per share, trimming his overall holding to 66,856 shares. Chad R. Abraham, Global Co-Head of Investment Banking and Capital Markets Group, offloaded 17,048 shares on Monday at a weighted average price of $56.33 per share. Mr. Abraham currently holds an ownership stake of 67,512 shares.

The well-known investment bank and asset management firm has seen its market value jump by 34% since the beginning of the year. Jaffray Companies (NYSE:PJC)’s third-quarter net revenues increased by 34.2% year-over-year to $200.85 million, primarily reflecting higher investment banking revenues. Higher fixed income institutional brokerage revenues also gave a boost to the company’s top-line figure. Fisher Asset Management cut its position in Jaffray Companies (NYSE:PJC) by 22% during the third quarter to approximately 87,000 shares.

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