Homan Matthew J.: insider trades

Officer at Polaris Inc. No open-market purchases and 10 sales not made under a pre-set plan, reported from July 23, 2010 to October 30, 2017.

What happened after Homan Matthew J.’s sales?

After their sales, the shares moved −5.5% 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

Homan Matthew J.: 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	−5.5%	−5.7%	80%	6	−2.17	0.083	No reliable evidence
Sales, 12 months after the report	10	−5.5%	−19.2%	60%	6	0.31	0.77	No reliable evidence
Sales, 12 months after the trade	10	−6.8%	−18.8%	60%	6	0.22	0.83	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
Polaris Inc. PII	President-Off-Road Vehicles	0	10	July 23, 2010	October 30, 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
October 30, 2017	October 26, 2017	PII	Sale	$2,931,700	−15.3%	−30.5%	−33.9%
May 18, 2017	May 16, 2017	PII	Sale	$226,096	+0.5%	+18.0%	+12.3%
February 23, 2015	February 20, 2015	PII	Sale	$260,340	−5.8%	−35.7%	−36.1%
February 4, 2015	February 2, 2015	PII	Sale	$3,622,785	−6.8%	−36.3%	−42.8%
November 25, 2014	November 21, 2014	PII	Sale	$234,390	−2.6%	−34.2%	−34.3%
November 5, 2014	November 3, 2014	PII	Sale	$498,135	−5.5%	−31.6%	−28.9%
February 27, 2014	February 26, 2014	PII	Sale	$962,714	−7.3%	+1.8%	+3.8%
February 6, 2013	February 4, 2013	PII	Sale	$3,676,070	−5.2%	+28.2%	+26.3%
May 14, 2012	May 10, 2012	PII	Sale	$1,056,510	−12.1%	−8.0%	−8.6%
July 23, 2010	July 22, 2010	PII	Sale	$539,631	+5.5%	+73.7%	+74.4%

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