Market Overview

Insider Buys LiveXLive Media Shares

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Chairman Ellin Robert S filed a Form 4 with the SEC on Monday, November 23. The insider bought 17,200 shares of LiveXLive Media Inc (NASDAQ:LIVX) at $1.89 on Thursday, Nov 19, and bought 16,653 shares at $1.99 on Friday, Nov 20. . After the transactions, the executive's stake in LiveXLive Media Inc. movedto 1,507,146 shares. Shares of LiveXLive Media moved higher by 1.4% from the previous closing price.

The Importance of Insider Transactions

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. 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. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its 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.

 

 

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