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Cusumano Robert: insider trades

Officer at Chubb Limited. No open-market purchases and 12 sales not made under a pre-set plan, reported from March 1, 2011 to July 29, 2013.

What happened after Cusumano Robert’s sales?

After their sales, the shares moved −0.3% against the index over 12 months on average (a negative figure means selling was the right call); 58% 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 12 −0.1% −2.7% 58% 3 — — Not enough years
Sales, 12 months after the report 12 −0.3% −3.5% 58% 3 — — Not enough years
Sales, 12 months after the trade 12 −0.4% −3.3% 58% 3 — — 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
Chubb Limited CB General Counsel012March 1, 2011July 29, 2013

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
July 29, 2013July 25, 2013 CB Sale $528,240 +0.4%−4.9%−4.6%
May 9, 2013May 8, 2013 CB Sale $366,555 −5.7%−3.4%−3.9%
May 7, 2013May 6, 2013 CB Sale $755,932 −6.3%−3.9%−2.8%
April 25, 2013April 24, 2013 CB Sale $496,060 −3.1%−3.7%−4.6%
February 28, 2013February 28, 2013 CB Sale $178,079 −2.7%−8.9%−8.1%
February 28, 2013February 27, 2013 CB Sale $157,887 −2.7%−8.9%−9.4%
February 27, 2013February 26, 2013 CB Sale $232,235 −3.8%−8.1%−10.1%
July 30, 2012July 27, 2012 CB Sale $218,910 +4.5%+1.2%+2.8%
December 9, 2011December 9, 2011 CB Sale $34,593 −5.4%+3.2%+3.4%
May 20, 2011May 20, 2011 CB Sale $405,301 +2.9%+7.3%+7.8%
March 4, 2011March 3, 2011 CB Sale $251,620 +10.2%+13.3%+13.1%
March 1, 2011February 28, 2011 CB Sale $293,807 +10.1%+13.3%+11.2%

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