InsiderEdge™️ Highlights: June 2024’s Top Insider Trades
Throughout June, InsiderEdge™️ by BBAE, our premier analytics tool for corporate insider trading, meticulously sifted through the month’s SEC reporting data to present you with the highlights of corporate insider trading activity. As you may know, these are published daily within the BBAE app. With its AI-driven capabilities, InsiderEdge™️ deciphers the complex signals from the corporate insider trading world, translating SEC filings into a curated list of top investing signals. These insights can provide a glimpse into the confidence levels of those who know their companies intimately—corporate insiders.
June has been an interesting month for InsiderEdge. Now, let’s delve into the highlights.
Palladyne AI Corp. ($PDYN)
- Trade Spotlight: On June 7th, a Director acquired 12,919 shares at $1.67/share, investing $21,587.65. This was their 18th largest purchase out of 22 all-time and increased their vested holdings by 1.8%.
- Stock Price Activity: As of the report date, the stock reached $1.97, a 18% increase from the purchase price of $1.67.
- Implications of the Trade: PDYN insiders have an impressive track record, with a perfect 100% win rate over the 1-year period and strong median returns across all time frames. The Director’s purchase, while smaller than their median size, is part of a cluster of insider buying, with one other insider also purchasing stock. This collective insider activity signals confidence in the company’s near-term prospects.
FTAI Aviation Ltd. ($FTAI)
- Trade Spotlight: On May 31st, the CEO and Chairman purchased 59,000 shares at $82.00/share, investing a total of $4.84 million. This was their largest purchase out of 8 all-time and increased their vested holdings by 18.1%.
- Stock Price Activity: As of the report date, the stock price stood at $96.45, a 17.6% increase from the purchase price of $82.00.
- Implications of the Trade: FTAI insiders have strong long-term performance, with 86% win rates for 3-month, 6-month, and 1-year periods. The substantial purchase by the CEO and Chairman, significantly above their median purchase size of $131K, suggests high confidence in the company’s future. This trade, part of a public offering, indicates a strong bullish signal.
CSP INC /MA/ ($CSPI)
- Trade Spotlight: On June 25th, a 10% Owner bought 3,950 shares at $13.89/share, investing a total of $54,859.18. This was their 26th largest purchase out of 64 all-time and increased their vested holdings by 0.3%.
- Stock Price Activity: As of the report date, the share price had appreciated to $15.44, marking a 11.2% increase from the purchase price of $13.89.
- Implications of the Trade: CSPI insiders have shown improving performance over time, with a 77% win rate and 90% weighted return over the 1-year period.
Deciphering The Signals
Looking at insider trades can give investors potential insights into a company’s future. An insider buying stock suggests they believe the stock will rise, indicating potential growth or undervaluation. Conversely, insiders selling shares could signal various things: they might need to liquidate assets for personal reasons, or it could hint at perceived overvaluation or upcoming challenges for the company.
However, it’s crucial to understand that insider trading is just one piece of the puzzle. While insider trades can provide valuable context, they are not infallible predictors of stock performance. Investors should always look at the bigger picture, including market conditions, company performance, industry health, and economic indicators, before making investment decisions.
InsiderEdge™️ serves as a valuable tool for investors who wish to incorporate insider trading data into their analysis. By spotlighting significant insider trades, it enables investors to potentially align their strategies with those who have the deepest insights into their companies — the corporate insiders.
