Alfred P West Jr.10% Owner to SEI Investments CEIUreported a major insider sell on Sept. 21, according to a new SEC filing.
What happened: A U.S. Securities and Exchange Commission Form 4 filing on Wednesday showed Jr sold 158,386 shares of SEI Investments. The total transaction amounted to $8,618,067.
SEI Investments shares are trading up 0.06% at $53.44 at the time of this writing Wednesday morning.
Now trade stocks online commission-free with Charles Schwab, a reliable and comprehensive investment firm.
Why Insider Trading Matters
Insider trading should not be used primarily to make an investment decision, however, it can be an important factor for an investor to consider.
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 trades via a Form 4 filing, which must be filed within two business days of the trade.
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 does not necessarily mean that the seller thinks the stock will go down.
Important transaction codes
Investors prefer to focus on transactions that take place in the open market, shown in Table I of the Form 4 filing. 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 stock in order to receive compensation that was promised when hired by the company.
View the full list of insider trading from SEI Investments.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.