Schear Mitchell N: insider trades

Officer at Vornado Realty Trust. No open-market purchases and 10 sales not made under a pre-set plan, reported from April 14, 2010 to January 3, 2017.

What happened after Schear Mitchell N’s sales?

After their sales, the shares moved −6.8% against the index over 12 months on average (a negative figure means selling was the right call); 80% 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

Schear Mitchell N: 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	−2.5%	−3.7%	70%	5	−1.75	0.15	No reliable evidence
Sales, 12 months after the report	10	−6.8%	−6.3%	80%	5	−1.74	0.16	No reliable evidence
Sales, 12 months after the trade	10	−7.8%	−10.0%	90%	5	−2.24	0.088	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

Company	Title on the latest filing	Purchases	Sales	First report	Latest report
Vornado Realty Trust VNO	President - VNO/Smith Division	0	10	April 14, 2010	January 3, 2017

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
January 3, 2017	December 29, 2016	VNO	Sale	$1,539,600	−9.8%	−33.6%	−24.4%
December 23, 2014	December 22, 2014	VNO	Sale	$2,929,000	+5.4%	−4.9%	−6.0%
July 2, 2014	June 30, 2014	VNO	Sale	$785,663	−3.9%	−3.1%	−6.4%
January 14, 2014	January 10, 2014	VNO	Sale	$2,281,500	+8.6%	+31.0%	+27.4%
December 26, 2012	December 21, 2012	VNO	Sale	$1,183,212	−3.9%	−15.6%	−14.9%
May 16, 2012	May 14, 2012	VNO	Sale	$632,980	−9.2%	−19.1%	−20.5%
November 8, 2011	November 7, 2011	VNO	Sale	$1,000,500	−3.5%	−15.5%	−11.8%
November 10, 2010	November 8, 2010	VNO	Sale	$314,611	−2.6%	−7.8%	−10.4%
September 8, 2010	September 3, 2010	VNO	Sale	$1,040,400	−13.8%	−4.6%	−9.6%
April 14, 2010	April 13, 2010	VNO	Sale	$3,218,289	+8.2%	+5.2%	−1.0%

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 Schear Mitchell N traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.