undamentalytics Newsletter
Sign in

Cash Harvey B: insider trades

Director at 2 companies we cover. No open-market purchases and 13 sales not made under a pre-set plan, reported from August 16, 2010 to January 9, 2017.

What happened after Cash Harvey B’s sales?

After their sales, the shares moved −16.5% against the index over 12 months on average (a negative figure means selling was the right call); 85% 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 13 −5.5% −7.3% 69% 7 −2.62 0.040 Some evidence: seller right
Sales, 12 months after the report 13 −16.5% −17.8% 85% 7 −3.01 0.024 Some evidence: seller right
Sales, 12 months after the trade 13 −15.7% −16.2% 92% 7 −2.67 0.037 Some evidence: seller right

“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
Silicon Laboratories Inc. SLAB —09August 16, 2010February 24, 2014
Ciena CIEN —04December 17, 2013January 9, 2017

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
January 9, 2017January 5, 2017 CIEN Sale $16,996 −13.6%−33.5%−34.5%
December 17, 2015December 14, 2015 CIEN Sale $15,728 −7.3%+6.3%+9.3%
December 17, 2014December 16, 2014 CIEN Sale $18,250 +2.2%+3.5%−0.4%
February 24, 2014February 20, 2014 SLAB Sale $3,524,665 −14.7%−17.2%−16.2%
February 20, 2014February 19, 2014 SLAB Sale $774,080 −15.2%−17.8%−14.2%
December 17, 2013December 16, 2013 CIEN Sale $13,134 +6.4%−28.3%−29.7%
February 8, 2013February 6, 2013 SLAB Sale $121,744 −14.6%−14.0%−13.5%
May 30, 2012May 29, 2012 SLAB Sale $394,124 +4.4%−3.7%−2.8%
November 22, 2011November 18, 2011 SLAB Sale $21,570 −6.1%−23.0%−22.9%
August 3, 2011July 28, 2011 SLAB Sale $13,438 +18.0%−7.4%−3.8%
May 20, 2011May 18, 2011 SLAB Sale $4,549,212 −12.1%−26.6%−25.3%
May 19, 2011May 17, 2011 SLAB Sale $652,650 −13.2%−26.3%−23.9%
August 16, 2010August 12, 2010 SLAB Sale $392,100 −5.6%−26.7%−26.0%

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 Cash Harvey B traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.