Amplify Energy Inc (NYSE:AMPY) was trading 2.5% higher from the previous closing price. A Form 4 filing filed with the SEC on Tuesday, June 23 showed that Brigade Capital Management, Lp sold 15,000 shares at $1.64 on Friday, Jun 19, and sold 15,000 shares at $1.56 on Monday, Jun 22.The transaction moved the executive's stake in Amplify Energy Inc. to 3,788,088 shares.

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.

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.