undamentalytics Newsletter
Sign in

Gapstar LLC and related entities: insider trades

10% owner, Other at 4 companies we cover. No open-market purchases and 9 sales not made under a pre-set plan, reported from March 26, 2010 to December 15, 2016. Trades reported separately by several related funds or companies are counted once, under this name.

What happened after Gapstar LLC and related entities’s sales?

After their sales, the shares moved −1.3% against the index over 12 months on average (a negative figure means selling was the right call); 56% 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

MeasuredTrades countedAverage vs S&P 500MedianWent the right wayYearst-statisticp-valueEvidence
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 9 −1.7% −1.0% 56% 5 −0.37 0.73 No reliable evidence
Sales, 12 months after the report 9 −1.3% −14.5% 56% 5 0.01 0.99 No reliable evidence
Sales, 12 months after the trade 9 −3.3% −13.0% 56% 5 −0.04 0.97 No reliable evidence

“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

CompanyTitle on the latest filingPurchasesSalesFirst reportLatest report
DHI Group, Inc. DHX —04December 17, 2010March 3, 2014
Genpact LTD G —02March 26, 2010October 29, 2012
Trinet Group, Inc. TNET —02March 31, 2014December 15, 2016
Lesaka Technologies Inc LSAK —01March 5, 2014March 5, 2014

Trades and what followed

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

ReportedTradedCompanyTradeValue3 months after report12 months after report12 months after trade
December 15, 2016December 14, 2016 TNET Sale $57,672,000 +12.3%+57.3%+58.6%
March 31, 2014March 31, 2014 TNET Sale $33,480,000 +6.9%+53.5%+52.8%
March 5, 2014March 3, 2014 LSAK Sale $535,765 +6.2%+24.4%+16.7%
March 3, 2014February 27, 2014 DHX Sale $4,494,000 −8.1%+8.6%+1.4%
October 29, 2012October 25, 2012 G Sale $6,249,989 −12.4%−14.5%−13.0%
May 17, 2011May 13, 2011 DHX Sale $1,118,746 −21.1%−33.1%−40.4%
February 24, 2011February 22, 2011 DHX Sale $890,554 −1.0%−41.5%−43.8%
December 17, 2010December 15, 2010 DHX Sale $1,200,055 −3.6%−38.9%−39.9%
March 26, 2010March 24, 2010 G Sale $1,618,125 +5.9%−27.9%−22.2%

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 Gapstar LLC and related entities traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.