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Chun Michael J: insider trades

Director at 2 companies we cover. No open-market purchases and 10 sales not made under a pre-set plan, reported from March 11, 2015 to March 11, 2019.

What happened after Chun Michael J’s sales?

After their sales, the shares moved −16.0% against the index over 12 months on average (a negative figure means selling was the right call); 90% 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 10 −6.1% −2.9% 70% 5 −2.06 0.11 No reliable evidence
Sales, 12 months after the report 10 −16.0% −14.8% 90% 5 −3.58 0.023 Some evidence: seller right
Sales, 12 months after the trade 10 −14.9% −12.5% 90% 5 −3.92 0.017 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
Matson, Inc. MATX —07March 11, 2015March 11, 2019
Bank Of Hawaii Corp BOH —03August 12, 2015March 8, 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
March 11, 2019March 8, 2019 MATX Sale $153,006 −3.4%−16.0%−12.0%
June 6, 2018June 5, 2018 MATX Sale $52,104 −0.8%−1.4%−5.0%
March 8, 2017March 7, 2017 BOH Sale $102,086 −6.7%−13.7%−12.9%
March 2, 2017March 2, 2017 MATX Sale $147,662 −13.3%−30.1%−30.1%
November 29, 2016November 29, 2016 MATX Sale $38,660 −17.7%−43.1%−42.9%
March 3, 2016March 3, 2016 MATX Sale $150,077 −20.9%−33.5%−32.2%
March 3, 2016March 2, 2016 BOH Sale $75,547 +0.2%+7.4%+9.6%
August 12, 2015August 11, 2015 BOH Sale $100,665 +3.4%−0.2%−1.0%
May 21, 2015May 21, 2015 MATX Sale $62,835 +0.1%−21.8%−21.6%
March 11, 2015March 10, 2015 MATX Sale $37,426 −2.4%−7.3%−0.8%

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 Chun Michael J traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.