Reidy Richard: insider trades

Chief executive at Progress Software Corp. No open-market purchases and 10 sales not made under a pre-set plan, reported from January 22, 2010 to October 31, 2011.

What happened after Reidy Richard’s sales?

After their sales, the shares moved −7.7% against the index over 12 months on average (a negative figure means selling was the right call); 60% trailed it.

With 296 insiders tested, some will look skilled or unskilled by chance alone: when we replaced each insider’s stocks with random companies bought on the same days, about 5.7 cleared the bar ahead and 23.3 behind. One record on its own proves little.

Trade by trade

Reidy Richard: trades against the S&P 500 afterwards
Measured	Trades counted	Average vs S&P 500	Median	Went the right way	Years	t-statistic	p-value	Evidence
Purchases, 3 months after the report	0	—	—	—	—	—	—	Not enough years
Purchases, 6 months after the report	0	—	—	—	—	—	—	Not enough years
Purchases, 12 months after the report	0	—	—	—	—	—	—	Not enough years
Purchases, 12 months after the trade	0	—	—	—	—	—	—	Not enough years
Sales, 3 months after the report	10	−1.6%	−0.4%	60%	2	—	—	Not enough years
Sales, 12 months after the report	10	−7.7%	−24.2%	60%	2	—	—	Not enough years
Sales, 12 months after the trade	10	−8.2%	−27.3%	60%	2	—	—	Not enough years

“Average vs S&P 500” is the stock’s return including dividends minus the index’s over the same dates, from the close on the first trading day after the report, or from the close on the trade date. Only windows that have finished are counted. For sales, a negative figure means the stock lagged after it was sold, so selling was the right call (green). “Went the right way” is the share of purchases that beat the index, or of sales that trailed it. The t-statistic uses one average per year of reports, because one person’s trades bunch into the same stock and weeks, and needs trades in at least four different years; the p-value comes from the t distribution with that number of years (with four years, a t of 2 has p = 0.14). “Some evidence” means p under 5%, “strong evidence” p under 1% over at least six years.

Companies traded

Company	Title on the latest filing	Purchases	Sales	First report	Latest report
Progress Software Corp PRGS	President and CEO.	0	10	January 22, 2010	October 31, 2011

Trades and what followed

Moves are against the S&P 500; green means the trade went the insider’s way.

Reported	Traded	Company	Trade	Value	3 months after report	12 months after report	12 months after trade
October 31, 2011	October 27, 2011	PRGS	Sale	$2,526,219	+2.8%	−21.3%	−25.2%
October 20, 2011	October 18, 2011	PRGS	Sale	$1,700,792	−3.5%	−27.9%	−35.5%
October 12, 2011	October 7, 2011	PRGS	Sale	$5,153,524	−16.6%	−30.7%	−32.5%
August 5, 2011	August 3, 2011	PRGS	Sale	$1,420,602	−1.0%	−27.1%	−29.3%
January 11, 2011	January 7, 2011	PRGS	Sale	$2,712,188	−0.2%	−38.9%	−40.7%
December 29, 2010	December 28, 2010	PRGS	Sale	$505,298	−4.2%	−35.1%	−34.5%
April 29, 2010	April 27, 2010	PRGS	Sale	$1,090,421	−0.5%	+20.8%	+22.3%
April 19, 2010	April 15, 2010	PRGS	Sale	$643,200	+4.5%	+26.5%	+28.0%
January 27, 2010	January 25, 2010	PRGS	Sale	$298,035	+1.5%	+28.1%	+28.9%
January 22, 2010	January 20, 2010	PRGS	Sale	$726,250	+1.1%	+28.9%	+36.2%

Open-market purchases and sales of at least $10,000 in companies we cover, from SEC Form 4 filings; sales made under a pre-set Rule 10b5-1 plan are not shown. “Not yet” means the window has not finished or the share price was under $5 at entry. These are the shares’ moves after each trade: they say nothing about why Reidy Richard traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.