James B GattoniPresident & CEO at Landstar system LSTRreported a major insider sale Nov. 2, according to a new SEC filing.
What happened: A Form 4 filing from the U.S. Securities and Exchange Commission On Wednesday Gattoni was revealed to have sold 20,000 shares Landstar system. The total transaction was $3,117,124.
Landstar system Shares are trading up 1.14% at $150.21 as of this writing on Thursday morning.
Why Insider Transactions Matter
Insider transactions should not be used primarily to inform an investment decision, but they can be an important factor for an investor to consider.
Any shareholder who holds at least 10% of a company is legally referred to as an “insider”. This can include executives in the C-suite and large hedge funds. These insiders must notify the public of their transactions via a Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it is an indication that they expect the price to rise.
Insider selling, on the other hand, can happen for a variety of reasons and doesn’t necessarily mean the seller thinks the stock will go down.
Important transaction codes
investors prefer to focus on transactions that occur in the open market as identified in Table I of the Form 4 filing. A P in box 3 indicates a purchase while S indicates a sale. transaction code C specifies the conversion of an option and transaction code A points out that the insider may have been forced to sell shares in order to receive compensation that the company promised him when he was hired.
Check out Landstar System’s full list of insider trades.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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