Heavy Insider Selling at Well-Known Direct Selling Company, Plus Other Notable Insider Transactions

Investors have been keeping track of insider trading metrics for decades. After all, corporate insiders tend to have a natural edge over retail investors or analysts, because the former camp of individuals usually has a better understanding of their businesses and industries than anyone else. Hence, retail investors are always a step behind those “in the know” regardless of how much research you do or how much financial news you read.

If only retail investors could just attend a company’s board meeting, they could find out what is really going on behind the scenes. Insider buying metrics have been used as a sign of stock price appreciation for years. On the contrary, insider selling is usually interpreted as a bearish sign. Indeed, insider buying and selling activity should not be used as the sole indicator when making the decision of buying or selling a company’s stock. Nonetheless, legitimate insider trading could represent a good starting point to further investigate a company’s fundamentals. With that in mind, let’s proceed to the discussion of a set of noteworthy insider transactions reported with the SEC on Friday.

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President and CIO of Transitioning REIT Pile Up Shares

An informed and supposedly well-informed executive at Investors Real Estate Trust (NYSE:IRET) bought a relatively sizable block of shares this past week. Mark O. Decker Jr., President and CIO, snapped up 9,000 shares on Friday at $6.15 each. Following the recent transaction, Mr. Decker currently owns 107,138 shares.

The equity real estate investment trust focused on owning and operating multifamily, healthcare and other properties has seen the value of its shares decline by 11% since the beginning of the year. In late August, Investors Real Estate Trust (NYSE:IRET) signed six agreements to sell 26 senior housing properties for around $236 million, a move that marked the REIT’s exit from that business. The REIT plans to refine its portfolio of assets to complete the transition to a pure-play multifamily REIT. Jim Simons’ Renaissance Technologies LLC was the owner of 2.12 million shares of Investors Real Estate Trust (NYSE:IRET) at the end of June.

The next pages of this insider trading article discuss another set of insider transactions reported with the SEC on Friday.

Insider at Mortgage-Related REIT Purchases Shares

One corporate insider at PennyMac Mortgage Investment Trust (NYSE:PMT) also purchased some shares this past week. Scott W. Carnahan, Independent Trustee since August 2009, bought 3,341 shares on Wednesday at a weighted average cost of $15.22 per share, lifting his ownership to 51,544 shares. The ownership stake also includes 11,219 restricted share units.

The shares of the specialty financial company that invests in residential mortgage-related assets are flat year-to-date. The value of mortgage servicing rights (MSRs), which represent arrangements by which a third party such as PennyMac Mortgage Investment Trust (NYSE:PMT) promises to collect and disseminate mortgage payments in exchange for a fee, tends to decline in a falling interest rate environment. Homeowners might take advantage of their right to refinance at lower rates, which essentially explains the fall in the value of MSRs. On the contrary, the value of MSRs increases as long-term interest rates rise, as refininancings fade and mortgage servicing companies can collect their fees over a longer period of time. Hence, one way of betting on an increasing-rate environment would be to invest in mortgage servicing companies such as PennyMac Mortgage Investment Trust. The REIT paid a cash dividend of $0.47 for the second quarter, a quarterly dividend that yields 12.31% annually. Clough Capital Partners, founded by Charles Clough, owns 659,173 shares of PennyMac Mortgage Investment Trust (NYSE:PMT) as of June 30.

Executives at Jack Henry & Associates Unload Shares

Two members of Jack Henry & Associates Inc. (NASDAQ:JKHY)’s executive team offloaded shares last week. To begin with, Kevin D. Williams, Chief Financial Officer and Treasurer, discarded 31,802 shares on Wednesday for $86.14 each, cutting his overall holding to 55,274 shares. Mark S. Forbis, Chief Technology Officer and Vice President, sold 3,000 shares on Wednesday at $86.75 apiece, but also offered 100 shares as a gift. After these transactions, Mr. Forbis currently holds a direct ownership stake of 1,836 shares.

The provider of technology solutions and payment processing services primarily for financial services organizations has seen its market cap increase by 11% since the start of the year. Jack Henry & Associates Inc. (NASDAQ:JKHY) reported revenues of $1.35 billion for its fiscal 2016 that ended June 30, an increase of 8% year-over-year. There were 15 hedge funds followed by Insider Monkey with long positions in Jack Henry & Associates at the end of June, as compared to 14 recorded at the end of the prior quarter. Royce & Associates, founded by Chuck Royce, had approximately 592,000 shares of Jack Henry & Associates Inc. (NASDAQ:JKHY) among its holdings at the end of the second quarter.

The final page of this article will discuss fresh insider selling at two other companies.

Executive at Shopping Center-Focused REIT Discards Shares

One insider at Macerich Co (NYSE:MAC) offloaded shares during the last trading session of the previous week. Randy L. Brant, Executive Vice President of Real Estate at Macerich, liquidated 24,250 shares on Friday at prices varying from $83.00 to $83.28 per share. Following the recent sale, Mr. Brant currently owns 26,928 shares.

The REIT engaged in the acquisition, ownership, development, management and leasing of regional and community/power shopping centers across the United States has seen its shares climb by 2% since the beginning of 2016. Macerich Co (NYSE:MAC) owned or had an ownership interest in 50 regional shopping centers and seven community/power shopping centers at the end of June. In early March, the REIT acquired a regional shopping center in Kansas City, called Country Club Plaza, through a 50/50 joint venture for a total price of $660.0 million. Adage Capital Management, founded by Phillip Gross and Robert Atchinson, reported ownership of 185,800 shares of Macerich Co (NYSE:MAC) in its 13F for the June quarter.

Board Member of Well-Known Direct Selling Company Sells Shares

A member of Nu Skin Enterprises Inc. (NYSE:NUS)’s boardroom offloaded a sizeable block of shares this past week. Board member Andrew D. Lipman sold 30,000 shares on Thursday at prices that fell between $63.93 and $64.36 per share. After the recent sale, Mr. Lipman currently owns 36,090 shares.

The shares of the direct selling company that develops and distributes personal care products and nutritional supplements are 66% in the green thus far in 2016. Earlier this year, Nu Skin Enterprises Inc. (NYSE:NUS) agreed to pay $47 million to settle a lawsuit that alleged the company operated a pyramid scheme in China based on illegal multi-level marketing activities. The maker of personal care products reported revenue of $600.5 million for the three months that ended June 30, up 7% year-over-year. The number of asset managers from our system with equity stakes in Nu Skin Enterprises increased to 17 from 15 during the April-to-June quarter. Eric Sprott’s Sprott Asset Management owned 102,500 shares of Nu Skin Enterprises Inc. (NYSE:NUS) at the end of the June quarter.

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