Bruce Cassidy Sr, Director at Loop Media (OTC:LPTV), made a large buy and sell of company shares on September 30, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Bruce Cassidy Sr purchased 7,004,619 Loop Media shares at prices ranging from ($0.00) to $2.92 per share for a total of $3,148,608 on September 30. They then sold their shares on the same day in the open market. They sold at a price of ($0.00) to raise a total of ($0.00) from the stock sale.
Sr still owns a total of 6,036,637 shares of Loop Media worth, $14,487,928.
Loop Media shares are trading up 3.9% at $2.4 at the time of this writing on Monday morning.
Why Insider Transactions Are Important
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Important Transaction Codes
Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.