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Market Overview

Insider Buys Pioneer Floating Rate Stock

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Shares of Pioneer Floating Rate Inc (NYSE:PHD) rose by 0.3% from the previous closing price. Saba Capital Management, L.P. filed a Form 4 with the SEC on Monday, June 15. The insider bought 13,560 shares at $9.38 on Thursday, Jun 11, and bought 154,266 shares at $9.46 on Friday, Jun 12. . After the transactions, the executive's stake in Pioneer Floating Rate Inc. movedto 4,756,270 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. 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. "

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 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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