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Brooks Robert J: insider trades

Director at Wabtec. No open-market purchases and 15 sales not made under a pre-set plan, reported from March 31, 2010 to August 21, 2018.

What happened after Brooks Robert J’s sales?

After their sales, the shares moved +12.3% against the index over 12 months on average (a negative figure means selling was the right call); 13% 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 15 +0.4% −0.6% 53% 7 −0.02 0.99 No reliable evidence
Sales, 12 months after the report 15 +12.3% +15.4% 13% 7 1.03 0.34 No reliable evidence
Sales, 12 months after the trade 15 +12.3% +19.4% 13% 7 1.00 0.36 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
Wabtec WAB —015March 31, 2010August 21, 2018

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
August 21, 2018August 21, 2018 WAB Sale $2,211,200 −15.5%−41.1%−41.9%
May 29, 2018May 25, 2018 WAB Sale $341,600 +5.2%−39.2%−37.7%
November 8, 2017November 6, 2017 WAB Sale $271,810 −7.5%+6.6%+2.3%
August 26, 2014August 22, 2014 WAB Sale $2,524,796 +4.5%+14.1%+13.2%
May 22, 2014May 21, 2014 WAB Sale $298,480 +4.0%+17.9%+20.8%
June 3, 2013May 30, 2013 WAB Sale $2,205,000 +6.3%+22.8%+25.0%
November 1, 2012November 1, 2012 WAB Sale $662,400 +9.8%+35.3%+32.6%
August 27, 2012August 24, 2012 WAB Sale $320,000 +7.9%+31.4%+28.8%
May 3, 2012May 1, 2012 WAB Sale $388,250 −0.6%+15.4%+19.4%
May 2, 2011April 29, 2011 WAB Sale $714,900 −5.0%+5.1%+4.5%
March 31, 2011March 31, 2011 WAB Sale $3,363,000 −2.6%+2.4%+2.9%
October 4, 2010September 30, 2010 WAB Sale $477,650 −3.2%+11.9%+12.5%
August 2, 2010July 30, 2010 WAB Sale $444,100 −1.6%+25.2%+25.1%
May 3, 2010April 30, 2010 WAB Sale $480,500 −1.0%+32.6%+33.0%
March 31, 2010March 31, 2010 WAB Sale $422,700 +5.4%+44.4%+44.0%

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