3 Dividend Plays Sold By Insiders

By Author: Daniel Bowman
Total Articles: 3
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What is not common however is for them to offload shares en masse especially at their historical highest. This move can easily be interpreted by the wilder investment community as a signal for a looming danger likely to face the company. It is a show that the management or insiders do not see a lot of potential in the shares of the company.In the recent days some stocks have witnessed heavy insider trading. For purposes of thus article, I will make mention of three of those stocks. Target Corporation (TGT)Target Corporation is a well known retailer in the United States. As a matter of volume and size, it lies second behind the giant Wall-Mart. A look at its market capitalization reveals a huge figure of$38 billion. In terms of dividend yield and pay out ratio, the numbers stand at 2.5 % and 33 % respectively. Compared to its competitors which are Wall-Mart and Costco wholesale Corporation, Target Corporation exceeds their dividend yields which are 2.3 % and 1.2 % respectively. The company has even gone to an extent of giving a decade forecast of its earnings per share and estimates it at 12 % per year. A look at its share price ...
... shows it changing hands at $ 57.47 which represents an increase of 12.4 % from the time the year began. It has on record 10 insider sales since 31st May, 2012. The insiders have so far offloaded 242, 678 shares at an average price of $ 58.58 per share. Some of the figures known to have disposed their shares are Roxanne S. Austin who is one of the company directors. This was closely followed by Tina M. Schiel who is the company executive Vice-president and General counsel. The body chairman and CEO sold 75, 817 shares at a price of $ 58.72 per share. Raytheon Co. (RTN)The technology sector is represented by Raytheon Company. A snapshot of the company's operations reveals it servicing defense, homeland security and other government markets all over the world. Its dividends pay out ratio stands at 37 % while its dividend yields lies at 3 %. The company's peers including Lockheed Martin, Northrop Grumman and General Dynamics posted their yields as 4.8 %, 3.6 % and 3.3 %. The company has suffered from defense budget cuts since most of its contracts are governmental in nature. Those monitoring shares sales for this company have it on record as having engaged in eleven transactions which included insider trading since 3rd June, 2012. The company CEO William H. Swanson offloaded 42, 187 shares. This could be an implication about the company's future. Time Warner Cable Inc. (TWC)Time Warner Cable Inc. thrives by operating in the video, data and voice services. The dividends yield for this company is 2.9 % and enjoys a pay out ratio of 43 %. A glimpse at its peers that is Comcast and Cablevision Systems notes a dividends yield of 2.1 % and 4.9 % respectively. For the next five years the company has projected its earnings per share estimates to average at 16.2 %. The price at which the company shares are changing hands revolves around $ 80. This is a 23 % gain from the beginning of the year. This company has reported two insiders trading transactions. The company's executive vice-president sold around 6, 000 shares priced at $ 77.37 per share. This trade was followed closely by Glenn A. Britt who sold into the market a total of 75, 000 shares. He is also the company's chairman and CEO.Thus insider trading is and still remains a powerful indicator about the future of the company in question.