Insider Sells Red Robin's Shares

Shares of Red Robin Gourmet Burgers Inc RRGB moved higher by 4.2% from the previous closing price. Vintage Capital Management Llc filed a Form 4 with the SEC on Thursday, June 11. The insider sold 559,208 shares at $18.48 on Tuesday, Jun 09, and sold 300,692 shares at $14.76 on Wednesday, Jun 10. . After the transactions, the executive's stake in Red Robin Gourmet Burgers Inc. movedto 940,792 shares.

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. 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. 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

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.