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Newman Judith: insider trades

Officer at Scholastic Corp. No open-market purchases and 28 sales not made under a pre-set plan, reported from March 29, 2012 to January 22, 2019.

What happened after Newman Judith’s sales?

After their sales, the shares moved −10.1% against the index over 12 months on average (a negative figure means selling was the right call); 68% 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 28 −2.0% −2.1% 64% 8 −1.06 0.32 No reliable evidence
Sales, 12 months after the report 28 −10.1% −10.5% 68% 8 −2.34 0.052 No reliable evidence
Sales, 12 months after the trade 28 −10.3% −10.6% 68% 8 −2.44 0.045 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
Scholastic Corp SCHL EVP, President, Book Clubs028March 29, 2012January 22, 2019

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 22, 2019January 18, 2019 SCHL Sale $149,399 −12.9%−41.9%−38.3%
October 31, 2018October 30, 2018 SCHL Sale $105,025 −4.4%−26.2%−23.9%
August 22, 2018August 21, 2018 SCHL Sale $769,297 +15.1%−19.7%−20.1%
August 21, 2018August 17, 2018 SCHL Sale $1,164,003 +16.3%−19.6%−19.3%
April 16, 2018April 12, 2018 SCHL Sale $120,070 +8.5%−10.2%−9.4%
January 17, 2018January 16, 2018 SCHL Sale $98,400 +10.0%+10.3%+10.7%
April 21, 2017April 19, 2017 SCHL Sale $569,402 −8.2%−15.7%−19.3%
April 3, 2017March 30, 2017 SCHL Sale $84,557 −0.9%−22.5%−19.5%
August 22, 2016August 18, 2016 SCHL Sale $16,500 +10.9%−17.0%−17.1%
August 4, 2016August 2, 2016 SCHL Sale $313,880 −1.1%−14.4%−16.3%
August 19, 2015August 18, 2015 SCHL Sale $843,402 −3.9%−10.5%−10.5%
August 17, 2015August 14, 2015 SCHL Sale $860,600 −5.5%−10.5%−10.7%
October 29, 2014October 28, 2014 SCHL Sale $49,875 +7.6%+16.8%+16.5%
October 24, 2014October 22, 2014 SCHL Sale $73,866 +12.0%+17.1%+15.1%
October 22, 2014October 20, 2014 SCHL Sale $96,390 +8.6%+15.4%+18.5%
October 20, 2014October 17, 2014 SCHL Sale $32,657 +6.1%+16.4%+19.6%
August 28, 2014August 26, 2014 SCHL Sale $192,549 −1.9%+24.9%+20.4%
August 26, 2014August 25, 2014 SCHL Sale $17,500 −2.2%+20.5%+22.3%
January 23, 2014January 21, 2014 SCHL Sale $340,891 −6.6%−3.4%−4.1%
December 30, 2013December 27, 2013 SCHL Sale $335,400 −1.3%−4.5%−5.1%
December 26, 2013December 24, 2013 SCHL Sale $505,850 +0.4%−5.1%−9.4%
August 12, 2013August 8, 2013 SCHL Sale $157,016 −8.9%+2.2%+2.8%
August 2, 2013July 31, 2013 SCHL Sale $243,077 −10.5%+5.2%+1.6%
April 18, 2012April 17, 2012 SCHL Sale $688,000 −16.7%−37.1%−37.0%
April 16, 2012April 12, 2012 SCHL Sale $1,036,200 −15.2%−37.0%−39.0%
April 11, 2012April 9, 2012 SCHL Sale $859,250 −17.2%−39.0%−39.1%
April 3, 2012March 30, 2012 SCHL Sale $1,535,814 −17.6%−40.1%−38.5%
March 29, 2012March 27, 2012 SCHL Sale $804,930 −17.1%−38.5%−39.8%

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