We are deep in the blackout period when most companies prohibit insiders from trading in their stock prior to quarterly earnings. Nonetheless, that rarely stops insiders from finding ways to sell using the ubiquitous 10b 5-1 selling plan loophole that the SEC and corporate America arranged for themselves. There’s not much to write about this week on the corporate insider buying front, but we have a lot to say in The Insiders Fund 1st Quarter 2024 Partner letter on our website.
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Name: Amy Banse
Position: Director
Transaction Date: 2024-04-10 Shares Bought: 1,575 Average Price Paid: $157.00 Cost: $247,275
Company: Lennar Corp (LEN)
Lennar Corporation and its subsidiaries are primarily homebuilder in the United States, operating under the Lennar brand. Its sectors include Homebuilding East, Central, Homebuilding Texas, Homebuilding West, Financial Services, Multifamily, and Lennar Other. The company’s homebuilding operations include the construction and sale of single-family attached and detached homes, as well as the purchase, development, and sale of residential land. It also develops, builds, and manages multifamily rental properties. The company also provides residential mortgage finance, title, insurance, and closing services to house buyers and others, as well as the origination and sale of commercial mortgage loans through securitization. In addition, the corporation participates in fund investments. It caters largely to first-time, move-up, active adults, and luxury homebuyers. Lennar Corporation was founded in 1954 and is headquartered in Miami, Florida.
Amy L. Banse was Comcast Ventures’ Managing Director and Head of Funds, as well as Comcast Corporation’s Senior Vice President. She also serves on the boards of Adobe Systems Incorporated, Clorox, and Lennar. Banse began her work at Comcast in 1991 as an in-house attorney overseeing programming acquisition. She spent her early career supervising the expansion of Comcast’s cable network portfolio, which included investments in E! Entertainment Television, The Golf Channel, and VERSUS, as well as the launch of G4, PBS KIDS Sprout, TV One, and Comcast’s sports networks. Amy currently serves on the boards of Adobe Systems Incorporated, Quantifind, Clorox, and TuneIn. She also works as an advisor for the Rich Talent Group. Banse earned a B.A. from Harvard University in 1982 and a J.D. from Temple University’s Beasley Law School in 1987.
Opinion: The millennials are the largest cohort of new home buyers in history. One of the negative consequences of which there are many, is that the inventory of homes for sale is at record low levels,the Federal Reserves restrictive monetary policy The large public home builders like Lennar can buy down the interest rates consumers pay
Name: Sanjiv Das
Position: President
Transaction Date: 2024-04-05 Shares Bought: 22,727 Average Price Paid: $10.57 Cost: $240,336
Company: Pagaya Technologies Ltd. (PGY)
Name: Tami Rosen
Position: Chief People Officer
Transaction Date: 2024-04-05 Shares Bought: 10,000 Average Price Paid: $10.47 Cost: $104,723
Company: Pagaya Technologies Ltd. (PGY)
Name: Avital Pardo
Position: Chief Technology Officer
Transaction Date: 2024-04-04 Shares Bought: 38,480 Average Price Paid: $10.36 Cost: $398,634
Company: Pagaya Technologies Ltd. (PGY)
Name: Gal Krubiner
Position: Chief Executive Officer
Transaction Date: 2024-04-04 Shares Bought: 33,600 Average Price Paid: $10.36 Cost: $348,069
Company: Pagaya Technologies Ltd. (PGY)
Name: Avi Zeevi
Position: Director
Transaction Date: 2024-04-04 Shares Bought: 30,000 Average Price Paid: $10.35 Cost: $310,578
Company: Pagaya Technologies Ltd. (PGY)
Name: Yahav Yulzari
Position: Chief Revenue Officer
Transaction Date: 2024-04-03 Shares Bought: 60,000 Average Price Paid: $10.17 Cost: $610,062
Company: Pagaya Technologies Ltd. (PGY)
Pagaya Technologies Ltd. is a product-focused technology firm that provides data science and unique artificial intelligence-powered technologies to financial institutions and investors in the United States, Israel, the Cayman Islands, and across the world. The company creates and executes unique artificial intelligence technology and related software solutions to help partners originate loans and other assets. Its partners include fast-growing financial technology startups, traditional banks and financial institutions, auto loan companies, and residential real estate service providers. Pagaya Technologies Ltd. was founded in 2016 and is based in New York, NY.
Sanjiv has over 30 years of experience in financial services and will join Pagaya as President in 2023. In this position, he is responsible for the strategy and growth of the company’s commercial division, which includes its single-family rental company and Darwin subsidiary. Before joining Pagaya, Sanjiv was the CEO of Calibre Home Loans, a residential mortgage lending company owned by NewRez. He achieved record year-on-year growth in the non-banking industry. Sanjiv has also served as CEO, President, and Chairman of the Board for Citi’s Mortgage Division, as well as Head of International Business at First Data, a KKR-owned company. He’s previously held prominent positions at Morgan Stanley, American Express, and Bank of America.
Tami Rosen is the current Chief People Officer at Pagaya Technologies Ltd. She formerly held the positions of Senior Director of Human Resources at Apple Inc. from 2014 to 2017 and Managing Director of Human Capital Management at The Goldman Sachs Group, Inc. from 1997 to 2013. Rosen also worked as Quora, Inc.’s Vice President of People from 2015 to 2019, and LAZR, Inc.’s Chief Product Officer from 2018 to 2020. She formerly served as Chief People Officer at Atlassian Corp. Plc and Chief Product Officer at Qromis, Inc. Rosen earned her undergraduate degree from the State University of New York in Binghamton.
Avital Pardo has served as Chief Technology Officer and Director of Pagaya since co-founding it in 2016. Mr. Pardo was instrumental in creating Pagaya’s AI-powered credit model and system. Before joining Pagaya, Mr. Pardo was one of Fundbox’s first employees, specializing on algorithms.
Gal Krubiner has been Chief Executive Officer and Director of Pagaya since co-founding the company in 2016. Mr. Krubiner has vast experience in the investing and wealth management industries, specializing in innovative and sophisticated credit structured solutions. Before co-founding Pagaya, Mr. Krubiner worked for UBS AG, structuring and marketing sophisticated credit and asset-backed securities products, as well as holding various positions specialized in investing, entrepreneurship, and finance.
Avi Zeevi has been a director of the Company since 2016. Mr. Zeevi has also been the chairman of Payoneer’s board of directors since 2008. Mr. Zeevi is a fintech entrepreneur and investor. Mr. Zeevi is also a co-founder of Viola FinTech and serves as chairman of its investment committee. Mr. Zeevi has over four decades of experience as an entrepreneur, leader, and investor. Mr. Zeevi has global financial industry experience from his involvement in many fintech startups, including MINT Systems, Decalog, and Actimize, where he served as active chairman from 2001 until the company was sold to NICE Systems. In addition, Mr. Zeevi serves on the boards of several private enterprises. Mr. Zeevi serves on the board of The Centre for Educational Technology, an organization dedicated to improving education in Israel, the Jewish world, and around the world. He also serves on the Board of Governors at the Israel Institute of Technology. Mr. Zeevi earned his B.Sc. in Industrial Engineering from the Technion, Israel Institute of Technology.
Yahav Yulzari has been Pagaya’s Chief Revenue Officer and Director since co-founding the company in 2016. Mr. Yulzari is in charge of Pagaya’s international expansion and commercial activities. He formerly worked as a real estate entrepreneur.
Opinion: The first question I ask myself is, what is the catalyst that provoked the insider’s buying interest? In this case, it’s not just one person but a group of insiders buying. My gut tells me this is as much a show of support as it is an opportunity.
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Insiders sell the stock for many reasons, but they generally buy for just one – to make money. You’ve always heard the best information is inside information. Everyone with any stock market experience pays close attention to what insiders are doing. After all, who knows a business better than the people running it? Officers, directors, and 10% owners are required to inform the public through a Form 4 Filing of any transaction, buy, sell, exercise, or any other within 48 hours of doing so. This info is available for free from the SEC’s Web site, Edgar, although we subscribe to SECForm4 as they provide a way to manage and make sense of the vast realms of data. I’ve tried a lot of vendors. SECForm4 is one of the smaller ones, but I like supporting Frank. He is not arrogant. He’s helpful and has great prices. He also trades on his own data, so I like people that eat what they kill.
The bar is different from selling because the natural state of management is to be a seller. This is because most companies provide significant amounts of management compensation packages as stock and options. Therefore, we analyze unusual patterns with selling, such as insiders selling 25 percent or more of their holdings or multiple insiders selling near 52-week lows. Another red flag is large planned sale programs that start without warning. Unfortunately, the public information disclosure requirements about these programs, referred to as Rule 10b5-1, are horrendously poor. Also, planned sales that pop up out of nowhere are basically sales and are seeking cover under this corporate welfare loophole. I also generally ignore 10 percent shareholders as they tend to be OPM (other people’s money) and perhaps not the smart money on which we are trying to read the tea leaves. I say generally because some 10% shareholders are great investors. Think Warren Buffett and others
Of course, insiders can also be wrong about their Company’s prospects. Don’t let anyone fool you into believing they never make mistakes. Do your own analysis. They can easily be wrong, and in many cases, maybe most cases, have no more idea what the future may hold than you or me. In short, you can lose money following them. We have, and we curse aloud; what were they thinking!
We like Fly on the Wall for keeping up with what events might be happening, analysts’ comments, and whatever else could be moving the stock. Dow Jones news service is an essential tool, but many services pick up their feed like they do Bloomberg. For quick financial analysis, it’s hard to beat Old School Value.
A big callout to my assistant Ambreen who sets up this conversation by listing the notable buys that I’ve identified. She probes the 10k for a reasonable description of the business. I’ve found that to be the most accurate and succinct place to find out what a business actually does.
This blog is solely for educational purposes and the author’s own amusement. Think of the blog as part of my personal investment journal that I am willing to share with the DIY investor. There are also many parts that I am not willing to share if I think it could influence trading action or be detrimental to the Fund’s partners. We could be long, short, or have no position at all in any of the stocks mentioned and express no written or implied obligation to disclose any of that.
The Insiders Fund is for qualified investors and by Prospectus only. Nothing herein should be construed otherwise. THE INSIDERS FUND prefers to invest in companies at or near prices that management has been willing to invest significant amounts of their own money in, but we have no requirement to do so. We also invest in many companies in anticipation of future insider buying or with the expectation that there is none at all.
You can be an insider, too– by clicking here
Prosperous Trading,
