Top insider trades (Mon, Jun 29)

Connor’s Commentary

Here is an interesting stat on software valuation.

A couple of months back, I also shared that insider buying in software companies was close to the level it was at during the 2022 dip (software then went up 60% in 2023 v 12% for S&P).

It’s hard to know when sentiment in software will shift, but I think it is a very compelling sector currently.

We have added several compelling software names to the CEO Watcher High Signal List and the CEO Watcher Portfolio.

CEO Watcher Premium subs can see those anytime in the Data Dump section at the bottom of these daily emails, or in the CEO Watcher Premium Dashboard Google Sheet (linked in the Data Dump section).

Today’s Largest Unscheduled Trades

There were 163 new insider trades filed.

1 insider trade was flagged as High Signal because it is trading 50% below its median EV/EBITDA multiple and sold off on earnings, even though management believes it was transitory and did not cut FY guidance. Multiple insiders bought the dip, which suggests they believe the market overreacted.

Our system gave high scores to 1 insider purchase (I shared our system’s notes on those in the High Scoring Purchases - Quick Notes).

We also found 1 insider purchase from an insider who averages 50%+ 1y returns.

CEO Watcher Premium subs can see those notes in later sections of this email.

Today’s largest unscheduled insider trades:

• 10% Owner (DART KENNETH BRYAN) at Flutter Entertainment plc $FLUT purchased $29.72M. Dip Buy: the stock was down -56% in the previous 6 months. This insider has purchased the stock 9 times in the last 30 days.

• Chief Executive Officer at 51Talk Online Education Group $COE purchased $4.55M. Dip Buy: the stock was down -42% in the previous month. This insider has purchased the stock 4 times in the last 30 days. Part of a 10b5-1 plan.

• Director (Ricks David A) at ADOBE INC. $ADBE purchased $1.95M (largest purchase ever, out of 7). This increased their listed holdings by 95%. Dip Buy: the stock was down -19% in the previous month. Their last purchase was 511 days ago.

• Director (ONeil Mark F) at CARMAX INC $KMX purchased $502.66K (largest purchase ever, out of 3). This increased their listed holdings by 23%. Rip Buy: the stock was up 30% in the previous month. 4 other insiders also purchased the stock in the last 30 days.

• Chief Financial Officer at Faeth Therapeutics, Inc. $FTH purchased $401.27K (4th largest purchase, out of 4). This increased their listed holdings by 89%. Rip Buy: the stock was up 38% in the previous month. 1 other insider also purchased the stock in the last 30 days.

• Director (CICCOTELLO CONRAD S) at TORTOISE ENERGY INFRASTRUCTURE CORP $TYG purchased $173.48K (largest purchase ever, out of 17). This increased their listed holdings by 33%. Their last purchase was 7855 days ago.

• 10% Owner (Mink Brook Asset Management LLC) at DLH Holdings Corp. $DLHC purchased $131.99K (11th largest purchase, out of 41). This insider has purchased the stock 8 times in the last 30 days. May be regularly scheduled weekly transaction.

• Director (Chawla Sona) at CARMAX INC $KMX purchased $106.78K (first-ever purchase). This increased their listed holdings by 10%. Rip Buy: the stock was up 30% in the previous month. 4 other insiders also purchased the stock in the last 30 days.

• Director (BVF PARTNERS L P/IL) at Kymera Therapeutics, Inc. $KYMR sold $173.67M (2nd largest sale, out of 76). This decreased their listed holdings by -36%. Rip Sell: the stock was up 33% in the previous month. Reversal: they made 9 straight purchases before this sale. 3 other insiders also sold the stock in the last 30 days.

• Director (MYERS FRANKLIN) at COMFORT SYSTEMS USA INC $FIX sold $13.09M (largest sale ever, out of 50). Rip Sell: the stock was up 48% in the previous 3 months. 1 other insider also sold the stock in the last 30 days.

• Director (DEZWIREK JASON) at CECO ENVIRONMENTAL CORP $CECO sold $6.59M (2nd largest sale, out of 5). Rip Sell: the stock was up 55% in the previous 3 months. 1 other insider also sold the stock in the last 30 days.

• SVP, Chief Financial Officer at CECO ENVIRONMENTAL CORP $CECO sold $2.89M (largest sale ever, out of 3). This decreased their listed holdings by -20%. Rip Sell: the stock was up 55% in the previous 3 months. Their last sale was 450 days ago. 1 other insider also sold the stock in the last 30 days.

• Chief Technology Officer at Immunovant, Inc. $IMVT sold $1.53M (first-ever sale). This decreased their listed holdings by -15%. Rip Sell: the stock was up 53% in the previous 3 months. 5 other insiders also sold the stock in the last 30 days.

• President & CEO at Atlanticus Holdings Corp $ATLC sold $1.09M (2nd largest sale, out of 13). Rip Sell: the stock was up 24% in the previous month. Their last sale was 1771 days ago. 1 other insider also sold the stock in the last 30 days.

• EVP, CFO at TELOS CORP $TLS sold $1.08M (2nd largest sale, out of 3). This decreased their listed holdings by -25%. 2 other insiders also sold the stock in the last 30 days.

• Chief Accounting Officer at Snowflake Inc. $SNOW sold $431.98K (5th largest sale, out of 14). Rip Sell: the stock was up 27% in the previous month. 6 other insiders also sold the stock in the last 30 days.

• Director (Mhatre Ravi) at Rubrik, Inc. $RBRK sold $284.46K (9th largest sale, out of 9). Rip Sell: the stock was up 51% in the previous 3 months. 3 other insiders also sold the stock in the last 30 days.

• SVP and Controller at Macy's, Inc. $M sold $258.28K (largest sale ever, out of 6). This decreased their listed holdings by -28%. Rip Sell: the stock was up 40% in the previous 3 months. 1 other insider also sold the stock in the last 30 days.

• and more…

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