Market Overview

Insider Buys Dun & Bradstreet's Shares

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Shares of Dun & Bradstreet Holdings Inc (NYSE:DNB) rose by 2.1% from the previous closing price. Hipsher Bryan T. filed a Form 4 with the SEC on Monday, November 9. The insider bought 4,000 shares at an average price of $26.39. After the transaction, the executive's stake in Dun & Bradstreet Holdings Inc. moved to 4,000 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.

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."

Transaction Codes To Focus On

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 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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