Well-Known Vehicle Rental Operator and GPU Specialist See Insiders Offloading Shares, Plus Other Noteworthy Insider Transactions

U.S. Securities and Exchange Commission regulations on insider trading state that it “shall be unlawful for an insider to sell or buy a security of the issuer, while in possession of material information with respect to the issuer or the security that is not generally available to the public.” Hence, corporate insiders who buy shares of their company before a huge positive announcement or sell shares before the release of a disappointing earnings report may receive a call, e-mail or visit from the SEC.

While Board members and executives can be penalized for buying and selling securities based on material non-public information, corporate insiders cannot be penalized for not trading securities. What do I mean by that? Corporate insiders are known for following the pattern of “buying low and selling high,” but how do they find attractive exit points? Let’s imagine for a minute that a COO plans to liquidate some shares for personal cash needs, but he or she quickly learns that the company discusses a possible sale of the entire business. The COO will most likely wait until the buyout offer is made public so that he or she can cash out at a much higher stock price. This case involves the usage of material non-public information, but the SEC cannot penalize the COO after all. All in all, while heavy insider selling does not imply worsening prospects for the company going forward, it might suggest that insiders do not anticipate any major positive developments in the near term. That said, let’s analyze a set of noteworthy insider transactions reported with the SEC on Monday.

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More Insider Buying at Healthcare-focused Holding Company

Shortly after three corporate insiders at Providence Service Corporation (NASDAQ:PRSC) bought shares in early September, another insider purchased a block of shares last week. David A. Coulter, appointed to the company’s Board of Directors in early July of 2016, purchased 4,225 shares on Friday in 14 transactions at prices that ranged from $46.99 to $47.50 per share. Following the recent purchase, Mr. Coulter currently owns 6,159 shares.

The shares of the holding company, whose subsidiaries provide critical healthcare and workforce development services, are up a little less than 1% since the beginning of the year. Providence Service Corporation (NASDAQ:PRSC) reported net consolidated service revenue of $450.63 million for the second quarter, up 7.7% year-over-year. In late August, healthcare-focused private equity firm Frazier Healthcare Partners inked a deal to acquire a 60% equity interest in health-assessment provider Matrix Medical Network, a subsidiary of Providence Service. Jim Simons’ Renaissance Technologies LLC was the largest equity holder of Providence Service Corporation (NASDAQ:PRSC) within our database at the end of June, with an ownership of 915,300 shares.

The next two pages of this article will discuss several other notable insider transactions reported with the SEC on Monday.

Board Member of Wisconsin-based Savings Bank Purchases Shares

One member of Westbury Bancorp Inc. (NASDAQ:WBB)’s boardroom also snapped up a relatively sizable chunk of shares last week, the most voluminous insider purchase at the company this year. Board member David G. Jorgensen filed Monday to disclose the purchase of 10,000 shares at prices varying from $19.39 to $19.50 per share, all of which are held by DLJ Investments LLC. Mr. Jorgensen serves as managing member of the LLC along with his spouse. The Board member holds a direct ownership stake of 2,216 shares, as well as owns 16,7000 shares indirectly through DLJ Investments.

The savings and loan holding company for Westbury Bank, a federally-chartered savings bank headquartered in Wisconsin, has seen the value of its shares gain 7% since the beginning of the year. Westbury Bancorp Inc. (NASDAQ:WBB) posted net income of $2.8 million for the nine months that ended June 30, up from $1.0 million reported for the same period of the prior year. There were a mere two hedge funds followed by Insider Monkey with long positions in the savings and loan holding company at the end of June, amassing 4% of the company’s total number of outstanding shares. Neil Chriss’ Hutchin Hill Capital reported ownership of 50,000 shares of Westbury Bancorp Inc. (NASDAQ:WBB) in its 13F for the second quarter.

Executive Chairman at Well-Known Vehicle Rental Operator Sells Shares

A well-informed corporate insider at Avis Budget Group Inc. (NASDAQ:CAR) discarded a sizeable block of shares in the past several trading sessions. Ronald L. Nelson, Executive Chairman of the Board of Avis Budget Group, liquidated 625 shares on Friday and 49,375 shares on Monday at a price tag of $38.00 each, cutting his direct ownership stake to 844,574 shares. Mr. Nelson also holds an indirect ownership stake of 15,472 shares, held via a family trust.

The leading vehicle rental operator in North America, Europe, Australia, New Zealand and other regions recently replaced Questar Corp. in the S&P MidCap 400 Index, which might result in increased demand for its shares as mutual funds and other institutions will most likely have to buy shares of Avis Budget as part of their mandate. In mid-September, Avis Budget Group Inc. (NASDAQ:CAR), the operator of three of the most recognized brands in the global vehicle rental and car sharing industry: Avis, Budget and Zipcar, agreed to purchase a France-based privately-held vehicle rental company called France Cars. The move was part of the company’s expansion plans in the French market. Shares of Avis Budget are up 3% year-to-date. Seth Klarman’s Baupost Group added a 1.79 million-share position in Avis Budget Group Inc. (NASDAQ:CAR) to its portfolio during the second quarter.

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

Board Member of Strong Performing GPU Specialist Discards Shares

One member of NVIDIA Corporation (NASDAQ:NVDA)’s Board of Directors unloaded a sizable amount of shares last week. Board member A. Brooke Seawell disclosed on Monday the sale of 30,000 shares, which were held by a revocable trust that currently owns 130,000 shares. The shares were sold at prices that fell in the range of $62.41 and $62.62 per share. Mr. Seawell also holds a direct ownership stake of 6,213 shares.

The graphics processing unit (GPU) specialist has seen its market capitalization skyrocket by 93% since the beginning of the year. Just recently, analysts at MKM Partners, who assigned NVIDIA Corporation (NASDAQ:NVDA) a ‘Buy’ rating and a price target of $74, believe that the self-named world leader in visual computing and fellow chipmaker Advanced Micro Devices Inc. (NASDAQ:AMD) are GPU “winners.” “Both companies are benefiting from recent GPU launches, with signs of abundant customer supply and attractive price-for-performance given continued premium pricing,” said MKM analysts in a fresh note. John Armitage’s Egerton Capital Limited owns 4.75 million shares of NVIDIA Corporation (NASDAQ:NVDA) as of the end of the second quarter.

CFO of Tyler Technologies Offloads Shares

The insider selling activity at Tyler Technologies Inc. (NYSE:TYL) has been very intense in the past several weeks, but most insiders sold freshly-exercised stock options. So let’s ignore the routine kind of insider selling and analyze spur-of-the-moment insider selling unrelated to stock options. Brian K. Miller, Chief Financial Officer, Executive Vice President and Treasurer, liquidated 6,485 shares on Thursday at a price of $173.01 per share. After the recent sale, Mr. Miller currently owns 52,775 shares.

Although the shares of the provider of integrated information management solutions and services for the public sector are down 2% year-to-date, the company’s stock has gained an impressive 36% in the past six months. Tyler Technologies Inc. (NYSE:TYL)’s total revenues for the six months that ended June 30 were $331.42 million, up 31% year-on-year. Organic revenue increased by 12% during the six-month period that ended June 30. The hedge fund sentiment towards Tyler increased during the second quarter, as the number of funds from our system with stakes in the company rose to 21 from 15 quarter-over-quarter. Ken Griffin’s Citadel Advisors LLC has around 307,000 shares of Tyler Technologies Inc. (NYSE:TYL) among its holdings as of the end of the April-to-June period.

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