Market Overview

Insider Buys CMG Holdings Group Stock


CMG Holdings Group Inc (OTC:CMGO) was trading unchanged from the previous closing price. A Form 4 filing filed with the SEC on Friday, July 24 showed that CEO Laken Glenn B bought 10,000 shares at $0.00 on Wednesday, Jun 10, bought 10,000 shares at $0.00 on Friday, Jun 12, bought 10,000 shares at $0.00 on Monday, Jun 15, bought 5,000 shares at $0.00 on Friday, Jun 26, bought 10,000 shares at $0.01 on Wednesday, Jul 08, bought 9,000 shares at $0.01 on Friday, Jul 10, bought 10,000 shares at $0.01 on Monday, Jul 13, bought 10,000 shares at $0.01 on Tuesday, Jul 14, bought 1,000 shares at $0.01 on Wednesday, Jul 15, bought 50,000 shares at $0.01 on Thursday, Jul 16, and bought 200,000 shares at $0.01 on Friday, Jul 17.The transaction moved the executive's stake in CMG Holdings Group Inc. to 11,855,000 shares.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."

Important Transaction Codes

Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward.

Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.


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