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Lawrence Thomas R: insider trades

Director at Cumberland Pharmaceuticals Inc. No open-market purchases and 16 sales not made under a pre-set plan, reported from March 25, 2011 to April 7, 2017.

What happened after Lawrence Thomas R’s sales?

After their sales, the shares moved −9.3% against the index over 12 months on average (a negative figure means selling was the right call); 60% 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 10 +1.7% +3.6% 40% 5 0.67 0.54 No reliable evidence
Sales, 12 months after the report 10 −9.3% −14.7% 60% 5 −0.59 0.58 No reliable evidence
Sales, 12 months after the trade 10 −7.1% −10.3% 60% 5 −0.15 0.89 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
Cumberland Pharmaceuticals Inc CPIX —016March 25, 2011April 7, 2017

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
April 7, 2017April 7, 2017 CPIX Sale $38,400 +4.4%−15.6%−18.5%
March 15, 2017March 13, 2017 CPIX Sale $129,673 +2.8%−16.6%−12.2%
November 18, 2016November 15, 2016 CPIX Sale $94,302 −4.0%+15.8%+28.9%
August 19, 2016August 17, 2016 CPIX Sale $13,800 not yetnot yetnot yet
May 27, 2016May 26, 2016 CPIX Sale $13,650 not yetnot yetnot yet
April 8, 2016March 17, 2016 CPIX Sale $21,700 not yetnot yetnot yet
November 20, 2015November 19, 2015 CPIX Sale $22,440 −12.0%−13.8%−8.5%
May 28, 2015May 26, 2015 CPIX Sale $41,280 −5.9%−34.5%−34.8%
March 20, 2015March 19, 2015 CPIX Sale $41,700 +5.0%−33.6%−37.5%
November 21, 2014November 20, 2014 CPIX Sale $51,200 +13.9%+7.8%+7.2%
August 22, 2014August 21, 2014 CPIX Sale $76,200 −4.5%+18.2%+15.6%
March 21, 2014March 19, 2014 CPIX Sale $90,800 not yetnot yetnot yet
November 25, 2013November 21, 2013 CPIX Sale $59,880 not yetnot yetnot yet
November 16, 2012November 16, 2012 CPIX Sale $27,688 not yetnot yetnot yet
November 22, 2011November 21, 2011 CPIX Sale $114,600 +11.5%−49.7%−45.0%
March 25, 2011March 24, 2011 CPIX Sale $105,600 +5.7%+29.3%+34.1%

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