Insider Buys Templeton Global Income Fund Shares

A Form 4 filing filed with the SEC on Tuesday, December 22 showed that Saba Capital Management, L.P. bought 64,052 shares of Templeton Global Income Fund GIMat $5.48 on Friday, Dec 18, and bought 429,543 shares at $5.51 on Monday, Dec 21.The transaction moved the executive's stake in Templeton Global Income Inc. to 17,703,001 shares. Shares of Templeton Global Income Fund rose by 0.1% 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.

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. 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 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.