Scripps Networks Interactive Inc. (SNI) and Reliance Steel & Aluminum Co (RS) Witness Some Insider Selling; Other Noteworthy Insider Transactions

Custer of Insider Selling at Global Media Company Amid Plans to Stop Licensing Content to Netflix

Three different insiders at Scripps Networks Interactive Inc. (NASDAQ:SNI) trimmed their holdings earlier this week. To start with, President and CEO Kenneth W. Lowe offloaded 29,281 Class A shares on Tuesday at prices that fell between $71.50 and $72.59 per share, cutting his ownership to 222,984 shares. David A. Galloway, a member of the company’s board since 2008, sold out his entire stake of 3,214 shares on Tuesday at a price of $73.49 per share. Last but not least, Chief Operating Officer Burton F. Jablin discarded 7,578 Class A shares on Monday at prices ranging from $72.68 to $72.83 per share, a sale that cut his holding to 28,710 shares.

The global media company and a leading developer of lifestyle-oriented content providing mainly home, food and travel-related programming has seen its market value increase by 28% since the start of the year. Scripps Networks Interactive Inc. (NASDAQ:SNI), whose portfolio of networks includes HGTV, Food Network, Travel Channel, DIY Network, among others, recently decided “not to extend [its] SVOD [subscription video on demand] agreement” with Netflix Inc. (NASDAQ:NFLX) past the end of 2016. The company’s management believes licensing content to Netflix doesn’t represent the best approach to monetize its content in the long term. This decision may hit Scripps Networks Interactive’s top-line quite significantly, considering that Netflix revenue accounted for around 28% of the company’s revenue last quarter. Mason Hawkins’ Southeastern Asset Management was the owner of 10.67 million shares of Scripps Networks Interactive Inc. (NASDAQ:SNI) at the end of September.

Board Member of Metals Service Center Company Sells Shares

One member of Reliance Steel & Aluminum Co (NYSE:RS)’s Board of Directors discarded a block of shares this week. Thomas W. Gimbel sold 23,500 shares on Tuesday at prices that ranged from $78.64 to $78.86 per share. After the recent sale, Mr. Gimbel currently owns a holding of 1.72 million shares.

In early August, the metals service center company acquired full-line metal distributor Alaska Steel Company, a company that provides steel, aluminum, stainless and specialty metals and related processing services to various industries throughout Alaska. However, Alaska Steel’s net sales were a mere $3.9 million for the two months that ended September 30, so Reliance Steel & Aluminum Co (NYSE:RS)’s top line did not get a strong boost from this acquisition last quarter. The company reported consolidated sales of $2.19 billion for the September quarter, down from $2.29 billion recorded for the same period of the previous year. The decrease reflects both lower tons sold and metals prices. The shares of Reliance Steel & Aluminum are up 33% year-to-date. Cliff Asness’ AQR Capital Management acquired a 1.41 million-share stake in Reliance Steel & Aluminum Co (NYSE:RS) during the September quarter.

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