Paul-Steven Lawrence, EVP and CMO at Sports academy (NASDAQ: ASO), made a large buy and sell of the company’s shares on Nov. 4, according to a new SEC filing.
What happened: A Form 4 filing from United States Securities Commission stipulate that Paul-Steven Lawrence exercise of purchase options 4,455 Sports academy shares at prices ranging from $ 16.57 to $ 17.30 per share for a total of $ 74,984 on November 4. They then sold their shares on the same day on the open market. They sold for prices ranging from $ 48.02 to $ 48.04 to raise a total of $ 213,941 through the sale of shares.
Following the operation, Laurent still owns 111,553 shares of Sports academy valued at $ 5,129,206.
Sports academy the shares are trading up 0.0% to $ 45.98 as of this writing on Monday morning.
The importance of insider trading
Insider trading should not be used primarily in making an investment decision, but an insider trading can be a big factor in the decision to invest.
In legal terms, an “insider” refers to 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 via a Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it indicates that they expect the stock to rise.
Insider selling, on the other hand, can be done for a variety of reasons and doesn’t necessarily mean the seller thinks the stock is going to go down.
Important transaction codes
Investors prefer to focus on transactions that take place in the open market, shown in Table I of Form 4 filing. A P in box 3 indicates a purchase, while S indicates a sale. Transaction code VS indicates the conversion of an option, and the transaction code A indicates that the insider may have been forced to sell shares in order to receive compensation that was promised to him when he was hired by the company.
Check out the full list of Academy Sports Insider Trades.