C Munroe BestPresident at Beacon Roofing Supply BECNreported a large exercise of the company’s stock options, according to a new SEC filing on May 16.
What happened: A Form 4 from the U.S. Securities and Exchange Commission on Tuesday showed that Best, president of Beacon Roofing Supply, an industrials company, currently has stock options worth 4,895 shares of BECN at an exercise price of $36.19 exercised.
Beacon Roofing Supply At the time of writing on Wednesday morning, shares are trading up 0.79% at $62.91. Since the current price is $62.91, Best’s 4,895 shares are worth $307,919.
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Why Insider Transactions Matter
Insider trading should not be the primary factor in making an investment decision, but an insider transaction can be an important factor in an investment decision.
In legal terms, an “insider” is any shareholder who owns at least 10% of a company. This can include senior executives and large hedge funds. These insiders are required to notify the public of their transactions on Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it’s an indication that they expect the stock to go up.
Insider selling, on the other hand, can happen for a variety of reasons and doesn’t necessarily mean that the seller believes the stock will go down.
Transaction codes to focus on
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 field 3 indicates a purchase while S indicates a sale. transaction code C specifies the conversion of an option and the transaction code A points out that the insider may have been forced to sell shares to receive compensation promised to him by the company when he was hired.
Check out Beacon Roofing Supply’s full list of insider trading.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
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