Insider Sells Voya Prime Rate Trust Shares

A Form 4 filing filed with the SEC on Wednesday, April 14 showed that Saba Capital Management, L.P. sold 52,930 shares of Voya Prime Rate Trust Inc PPR at $4.65 on Monday, Apr 12, and sold 56,342 shares at $4.65 on Tuesday, Apr 13.The transaction moved the executive's stake in Voya Prime Rate Trust Inc. to 27,105,550 shares. Voya Prime Rate Trust Inc  was trading flat from the previous closing price.

Why Insider Transactions Are Important?

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."

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.