Insider Buys Liberated Syndication's Shares

Heyse Richard filed a Form 4 with the SEC on Monday, August 31. The insider bought 5,475 shares of Liberated Syndication Inc LSYN at $3.52 on Thursday, Aug 27, bought 2,875 shares at $3.55 on Friday, Aug 28, and bought 3,333 shares at $3.57 on Monday, Aug 31. After the transactions, the executive's stake in Liberated Syndication Inc. movedto 19,925 shares. Shares of Liberated Syndication fell by 1.1% from the previous closing price.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with 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 other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.