Those of you that follow wallstreetbets or similar might have seen this ticker OPEN bouncing around as the latest short squeeze fad.
On Thursday evening, the OPEN CEO bought 30k shares, the equivalent of about 120k. This was an open market purchase, the type that I track and sort for. (more on the filing in a bit). He posted this to twitter:
So you may be wondering:
Why didn’t this purchase show up on the daily email that I send out? (insidertradingalerts.ai, go sign up for nightly insider trading alerts!). It’s because the ratio of increase in his holdings. Really, this was a 1% increase in the amount of stock that he owns. It’s a nice gesture, but it wasn’t enough to get past the algorithm that I use, because it’s not a large enough purchase to show true conviction.
The more interesting thing to me is the 10b5-1 selling plans cancellation. On the cynical side, there’s plenty of ways for them to leverage their stock gains into cash. Or, when the hype dies down just implement the 10b5-1 plan again. Not only that, but you can just sell stock on the open market without a filing, but the 10b5-1 really helps with SEC scrutiny.
So on to the filing analysis. This is what the filing looks like:
These filings will note who is doing the buying (name, title), as well as method of acquisition or disposition. In this case, we see a P for open market purchase, and 30k shares between 4.27 and 4.42.
We also see the number of shares he already owns – over 4.2 million. This means every one cent move in the stock is 42,000 dollars of wealth created for him. If I’m him, I would certainly spend 120k of my own money to move the stock a couple cents.
