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Perham Leonard Charles: insider trades

Chief executive at Peraso Inc. 8 open-market purchases and no sales not made under a pre-set plan, reported from December 10, 2010 to March 5, 2015.

Would copying Perham Leonard Charles’s purchases have beaten the S&P 500?

Too few purchases to judge. None of their purchases has 12 months of prices after the report; we judge insiders once they have 20. The figures below can swing a long way on a handful of trades. None of their purchases could be priced, so there is no copy portfolio. None of these trades can be measured yet: either the window after the report has not finished or the share price was under $5 when it was reported.

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 0 — — — — — — Not enough years
Sales, 12 months after the report 0 — — — — — — Not enough years
Sales, 12 months after the trade 0 — — — — — — Not enough years

“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
Peraso Inc. PRSO President and CEO80December 10, 2010March 5, 2015

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 5, 2015March 4, 2015 PRSO Purchase $500,000 not yetnot yetnot yet
November 17, 2014November 14, 2014 PRSO Purchase $18,000 not yetnot yetnot yet
November 13, 2014November 10, 2014 PRSO Purchase $69,100 not yetnot yetnot yet
May 20, 2013May 17, 2013 PRSO Purchase $1,000,000 not yetnot yetnot yet
June 1, 2012May 31, 2012 PRSO Purchase $128,738 not yetnot yetnot yet
May 22, 2012May 21, 2012 PRSO Purchase $149,989 not yetnot yetnot yet
May 21, 2012May 17, 2012 PRSO Purchase $149,808 not yetnot yetnot yet
December 10, 2010December 10, 2010 PRSO Purchase $1,204,500 not yetnot yetnot yet

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 Perham Leonard Charles traded and do not suggest the use of non-public information. How every insider compares · the insider trading backtest.