Executives at Crane Manufacturer Buy Shares Amid Optimism about Infrastructure Spending Boost, Plus Other Insider Trading

Although U.S. equity markets do not appear to be tired of hitting all-time highs, corporate insiders keep buying shares – insider buying activity is usually non-existent when stock market benchmarks are hovering around all-time highs. In today’s information age, with an abundance of contradictory news signals and the emergence of fake news (mainly manufactured by President Donald Trump and his team), are there indicators investors can safely rely on? How about securities purchases by company executives and Board members who put their own hard-earned capital at stake?

As well-known mutual fund manager Peter Lynch once observed: “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.” More importantly, a number of academic studies support Mr. Lynch’s conclusion that corporate insiders are good at trading their own company’s shares. The so-called insider anomaly has been supported by dozens of research papers conducted by professors at top-tier universities and pundits in the area of insider trading. However, investors should not solely follow a random executive buying or selling shares. Instead, one should incorporate insider trading metrics into their broader stock analysis process to decrease the odds of making wrong bets. That being said, let’s discuss a set of noteworthy insider transactions reported with the SEC on Tuesday.

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Several Insiders at Promising Biotechnology Company Buy Shares Via Public Offering

Five corporate insiders at Aldeyra Therapeutics Inc. (NASDAQ:ALDX) recently purchased shares via a public offering, so let’s have a look at the most voluminous purchases. Board member Richard H. Douglas acquired a new stake of 40,000 shares on Friday at a price of $4.50 per share. President and Chief Executive Officer Todd C. Brady snapped up 22,223 shares on the same day at the same price, boosting his ownership to 64,408 shares.

The biotechnology company focused on the development of new products for inflammation, inborn errors of metabolism, and other diseases related to aldehydes raised around $10.5 million from the offering. Aldeyra Therapeutics Inc. (NASDAQ:ALDX) plans to use the proceeds to push forward the development of its lead compound, ADX-102, and other product candidates, as well as fund research and development activities, working capital and other general corporate needs. ADX-102, a product candidate that has enjoyed significant development, is a novel small molecule chemical entity designed to trap and allow for the degradation of aldehydes, toxic chemicals species suspected to cause and exacerbate numerous diseases in humans and animals. The shares of Aldeyra Therapeutics have gained 36% in the past 12 months. Baker Bros. Advisors LP, founded by Julian and Felix Baker, reported owning 142,000 shares of Aldeyra Therapeutics Inc. (NASDAQ:ALDX) through the latest round of 13Fs.

The second page of the article discusses fresh insider buying at two other companies.

CEO of Battered Clinical-Stage RNAi Company Keeps Buying Shares

While purchases conducted through public offerings are worth analyzing, insider purchases made on the open market are much more informative. After all, some executives may participate in public offerings because their companies need capital to survive (not because the shares are cheap). The man in charge of RXi Pharmaceuticals Corp (NASDAQ:RXII) snapped up some shares on the open market this past week. President and CEO Geert Cauwenbergh bought 10,000 shares on Friday at a weighted average price of $0.69 per share. Dr. Cauwenbergh currently owns an aggregate of 92,583 shares after the Friday purchases.

The shares of the clinical-stage RNAi company have plunged by 76% in the past year and Dr. Cauwenbergh has been constantly buying 10,000-share blocks over the past several months. So it’s probably worth considering RXi Pharmaceuticals Corp (NASDAQ:RXII) as a possible investment. The so-called RNAi therapies are designed to “silence” the expression of a specific gene that may be over-expressed in a disease condition. At the beginning of the month, RXi Pharmaceuticals received a written notice from the Nasdaq Stock Market notifying the company of non-compliance with the minimum bid price requirements for continued listing. As a result, the bid price of the company’s shares must have a closing bid price in excess of $1.00 per share for ten consecutive business day to regain compliance. Hal Mintz’s Sabby Management LLC added a 397,371-share position in RXi Pharmaceuticals Corp (NASDAQ:RXII) to its portfolio during the fourth quarter.

Executives at Crane Manufacturer Buy Shares Amid Optimism About Infrastructure Spending

Several executives at Manitowoc Company Inc. (NYSE:MTW) purchased shares in the past few weeks. To start with, Aaron H. Ravenscroft, Executive Vice President of Mobile Cranes, snatched up 5,000 shares on Tuesday at a price tag of $6.57 each, lifting his overall holding to 28,456 shares. President and CEO Barry L. Pennypacker bought 78,000 shares last Tuesday at prices varying from a low of $6.26 to a high of $6.35 per share. Mr. Pennypacker owns a total of 86,419 shares after the purchase.

The shares of the crane manufacturer have gained 10% thus far in 2017, a climb fueled by Donald Trump’s inauguration speech on January 20. President Trump emphasized and restated his plans to rebuild the nation’s infrastructure, which spurred optimism among investors. Manitowoc Company Inc. (NYSE:MTW) completed the spin-off of its foodservice business in early March 2016, a spin-off based on the premise that the separation would result in better capital allocation decisions, strategic flexibility, and distinct business profiles appealing to different groups of investors. Carl Icahn’s Icahn Capital LP held 10.58 million shares of Manitowoc Company Inc. (NYSE:MTW) at the end of 2016.

Let’s move on to the final page of the insider trading article, where we discuss recent insider selling at two other companies.

CEO of Data Analytics Provider to Healthcare Organizations Sells 500,000 Shares

The man at the helm of National Research Corp (NASDAQ:NRCIA) offloaded a large amount of shares at the end of the previous week. Chief Executive Officer Michael D. Hays, who founded National Research in 1981, discarded a block of 500,000 Class A shares on Friday for $17.45 each. Following this transaction, the CEO currently owns an aggregate of 5.25 million Class A shares, along with an additional 1.97 million Class B shares.

The data analytics and insights provider to healthcare organization in the United States and Canada has seen the value of its shares advance by 21% in the past 12 months. The insider selling discussed above comes a few days after the release of a seemingly disappointing earnings report, as National Research Corp (NASDAQ:NRCIA)’s shares plunged following the announcement. The company reported revenue of $109.4 million for the entire 2016, up from $102.3 million recorded for 2015. Meanwhile, the bottom line rose to $20.5 million from $17.6 million. Jim Simons’ Renaissance Technologies LLC was the owner of 127,200 shares of National Research Corp (NASDAQ:NRCIA) at the end of December.

Cluster of Insider Selling at Strong Performing Cloud Software Company

A significant number of insiders at Blackbaud Inc. (NASDAQ:BLKB) unloaded shares this past week, so let’s take a glimpse at some notable transactions. To begin with, President and CEO Michael P. Gianoni discarded 44,252 shares on Thursday at prices varying from $72.86 to $73.41 per share. Mr. Gianoni currently owns 263,261 shares after the sale. Brian E. Boruff, Executive Vice President and President of Enterprise Markets Group, sold 3,500 shares at prices between $73.30 and $73.32 per share, cutting his ownership to 44,164 shares. Chief Financial Officer Anthony W. Boor liquidated 3,004 shares on the same day at a weighted average price of $73.12 per share, a sale that trimmed his stake to 107,250 shares.

The shares of the cloud software company surged at the beginning of the month after the company released stronger-than-expected fourth-quarter results. The stock is 14% in the green so far in 2017. Blackbaud Inc. (NASDAQ:BLKB) reported revenue of $198.3 million for the quarter, up by 11.3% year-over-year and $3.4 million more than analysts’ projections. The company’s bottom line rose by 57% year-on-year to $28 million. Balckbaud’s business transition to a subscription-based cloud delivery model has been quite fruitful, allowing the company to boost sales and margins, as well as drive strong earning growth. Royce & Associates, founded by Chuck Royce, had roughly 168,000 shares of Blackbaud Inc. (NASDAQ:BLKB) heading into 2017.

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