TechTarget Inc. (TTGT) Registers Insider Selling Ahead of Earnings Release, Plus Notable Insider Selling at Two Other Companies

Corporate insiders have two means of buying and selling shares of their companies. The first option involves conducting transactions in the open market through a broker like any other retail investor out there does. The second option involves selling or buying shares on a systematic basis through pre-arranged trading plans, referred to as 10b5-1 plans.

Investors are well aware that executives and Board members sell shares for a wide range of reasons that may not be related to their company’s current developments or future outlook. And these 10b5-1 plans enable insiders to diversify their holdings without facing the prospect of insider trading liability, simultaneously avoiding intensifying worries among investors. As Insider Monkey attempts to find information-rich trades only, our team ignores all insider trading made under pre-arranged trading plans. It is nearly impossible to find out which insider sales are conducted because insiders anticipate bad times ahead, but one can at least get rid of those insider transactions that are deemed to be useless for certain. Having this in mind, the following article will discuss possible information-rich insider selling conducted at three U.S. publicly traded companies.

Through extensive research, we have determined that the due diligence that the investors in our database employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also shown that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).

Successful Smart-Lighting Marker Sees Two Insiders Sell Some Shares

Acuity Brands Inc. (NYSE:AYI) has seen two corporate insiders offload shares thus far in July. To start with, Executive Vice President Mark A. Black discarded 2,654 shares on Wednesday at prices varying from $250.19 to $250.40 per share, cutting his overall holding to 38,654 shares. Board member Ray M. Robinson sold 786 shares last Friday at a price tag of $248.55 each. After the recent sale, Mr. Robinson currently owns 2,000 shares.

The well-known smart-lighting maker has seen the value of its shares skyrocket by 384% in the past five years and 35% in the past year alone, so it may be wise for long-serving employees to diversify their holdings. The Atlanta-based company has grown at a rapid pace in recent years as individuals seek controlled, connected lighting products amid strong demand for “Internet of Things” solutions in buildings. Earlier this week, Acuity Brands Inc. (NYSE:AYI) announced the acquisition of DGLogik Inc., a provider of software solutions that enable users to better manage energy usage and improve facility performance. Hence, the acquisition will enhance the acquirer’s expansion into the fast-growing market for intelligent networked systems. Acuity Brands recorded net sales of $851.5 million for the three months that ended May 31, up 24.5% year-over-year.

The lighting company fell out of favor with the hedge funds tracked by our team during the first three months of 2016, as the number of funds invested in the company declined to 22 from 31 quarter-over-quarter. Robert Joseph Caruso’s Select Equity Group was the owner of 653,045 shares of Acuity Brands Inc. (NYSE:AYI) at the end of March.

Let’s move on to the next page of this article, where we will discuss the insider selling activity registered at two other companies.

Oregon-based Steel Producer Registers Some Insider Selling

Schnitzer Steel Industries Inc. (NASDAQ:SCHN) recently registered the first insider trading of 2016, so let’s find out who stands behind the recent activity. Jeffrey Dyck, President of Steel Manufacturing Business, sold 8,905 Class A shares for $17.61 each and 300 shares at $17.62 apiece on Tuesday, cutting his direct ownership stake to 37,965 shares. Mr. Dyck also holds an indirect ownership stake of 23,893 shares, which are held jointly with Julie K. Dyck through the Jeffrey Dyck and Julie K. Dyck Revocable Living Trust.

The recent insider selling comes after the Oregon-based steel producer released its better-than-expected financial results for the fiscal 2016 third quarter that ended May 31. Net selling prices for ferrous scrap metal increased meaningfully during the company’s third quarter of fiscal 2016, after experiencing sharp declines in the first half of fiscal 2016. Precisely, average net selling prices for shipments of ferrous scrap metal were $46 per ton for the third quarter of fiscal 2016, 27% higher than in the previous quarter. Still, average net selling prices were lower by 9% than in the first quarter of fiscal 2015. More importantly, Schnitzer Steel Industries Inc. (NASDAQ:SCHN) managed to improve its operating results significantly due to a series of cost reduction and productivity improvement initiatives. The company’s operating income was $15 million for the quarter, as compared to consolidated operating loss of $4 million reported for the third quarter of fiscal 2015.

There were 17 funds followed by Insider Monkey with long positions in the steel producer at the end of March, which hoarded up 24% of the company’s outstanding common stock. Schnitzer Steel’s stock is 23% in the green year-to-date. Peter Schliemann’s Rutabaga Capital Management reported ownership of 1.15 million shares of Schnitzer Steel Industries Inc. (NASDAQ:SCHN) in its latest 13F.

Technology Media Company Registers Insider Selling Ahead of Earnings Release

TechTarget Inc. (NASDAQ:TTGT) has witnessed a number of insiders sell shares in the past several months, so let’s take a look at the most recent activity. President Kevin Beam unloaded 7,300 shares on Wednesday at a price of $8.00 per share. Mr. Beam currently owns 602,558 shares. Interestingly enough, the insider selling comes shortly before the technology media company will release its 2016 second quarter financial results in early August. Should investors be worried? Only time will tell!

The shares of the provider of specialized online content for buyers of corporate information technology products and services are down a little less than 2% since the beginning of 2016. TechTarget Inc. (NASDAQ:TTGT)’s core online offerings allow customers to reach and influence prospective buyers through content marketing programs and display advertising. The company reported revenues of $25.0 million for the first three months of 2016, up by roughly 6% year-over-year. Its largest customers, which account for nearly half of the company’s revenue, faced significant headwinds during the first quarter that were reflected in their marketing expenditures. For the second quarter, TechTarget anticipates overall revenues in the range of $29.0 million-to-$30.1 million.

The smart money sentiment towards TechTarget declined meaningfully during the first quarter, as the number of hedge funds from our database with stakes in the company fell to 11 from 17 quarter-on-quarter. Those 11 asset managers amassed 23% of the company’s outstanding shares. Douglas T. Granat’s Trigran Investments had 2.54 million shares of TechTarget Inc. (NASDAQ:TTGT) among its holdings at the end of March.

Disclosure: None