Insiders at the biggest U.S. banks have had a poor record in picking the bottom for their companies' stocks, but at Citigroup, where insiders bought shares as they bottomed in March, bank officials are buying again.
Chairman Richard Parsons, new Citibank head Eugene McQuade and Manuel Medina-Mora, the chief executive of Citigroup's Latin America and Mexico business, combined to buy $6.68 million in stock at an average per-share price of $3.31, according to regulatory filings.
The buy from Mr. Medina-Mora follows a nicely timed $1.86 million purchase in March, when he paid about $1.24 a share as Citigroup's shares traded near multiyear lows.
Chairman Richard Parsons, new Citibank head Eugene McQuade and Manuel Medina-Mora, the chief executive of Citigroup's Latin America and Mexico business, combined to buy $6.68 million in stock at an average per-share price of $3.31, according to regulatory filings.
The buy from Mr. Medina-Mora follows a nicely timed $1.86 million purchase in March, when he paid about $1.24 a share as Citigroup's shares traded near multiyear lows.
Through a company spokeswoman, the three officers said the latest stock purchases "represented their confidence in the long-term performance of the company."
Some investors scrutinize the trading records of company executives, directors and large stakeholders, believing that following the moves of these corporate insiders can be profitable. That theory failed spectacularly during 2008, when many purchases at leading banks turned out poorly for the insiders and their emulators.
To wit: Citigroup Chief Executive Vikram Pandit paid $9.25 a share for $6.93 million of Citigroup stock in November. Mr. Medina-Mora bought $5 million in Citigroup shares in January 2008 when Citigroup traded above $27.
Even in the face of those missteps, buying has remained elevated at Citigroup. For more than two years, insiders have been net buyers, an unusual pattern at large companies where executives receive much of their compensation in company stock.
"I am no longer out-of-hat dismissing financials," said Jonathan Moreland, research director for InsiderInsights.com. Mr. Moreland said he likes to see companies such as Citigroup with rising stock prices and continuing insider buying. "It's one of my favorite combinations," he said.
Still, investors need only remember as far back as 2008 to realize the perils of following insiders blindly.
"It just goes to show how difficult it is, even for these guys, to see what's going on," Mr. Moreland said.
Greenhill, Evercore Share Sales Benefit Staff
Staff at U.S. investment-banking boutiques Greenhill & Co. and Evercore Partners made nearly $300 million from the sale of shares in their companies last week.
Managing directors and senior advisers at Greenhill sold a total of three million shares at a price of $73.53 each, according to a Securities and Exchange Commission filing. Its three most-senior executives sold a combined $124 million of stock.
Among those who sold stock according to the SEC filing were Robert Greenhill, founder and chairman, $76 million;Scott Bok, co-chief executive, $24 million; and Simon Borrows, co-chief executive, $24 million.
Evercore raised $61.5 million from selling shares. According to the SEC filing, the following amounts will be paid to senior staff for their partnership units: Roger Altman, founder and chairman, $9.6 million; Eduardo Mestre, vice chairman, $3.6 million; Pedro Aspe, co-chairman, $5.1 million.
Some investors scrutinize the trading records of company executives, directors and large stakeholders, believing that following the moves of these corporate insiders can be profitable. That theory failed spectacularly during 2008, when many purchases at leading banks turned out poorly for the insiders and their emulators.
To wit: Citigroup Chief Executive Vikram Pandit paid $9.25 a share for $6.93 million of Citigroup stock in November. Mr. Medina-Mora bought $5 million in Citigroup shares in January 2008 when Citigroup traded above $27.
Even in the face of those missteps, buying has remained elevated at Citigroup. For more than two years, insiders have been net buyers, an unusual pattern at large companies where executives receive much of their compensation in company stock.
"I am no longer out-of-hat dismissing financials," said Jonathan Moreland, research director for InsiderInsights.com. Mr. Moreland said he likes to see companies such as Citigroup with rising stock prices and continuing insider buying. "It's one of my favorite combinations," he said.
Still, investors need only remember as far back as 2008 to realize the perils of following insiders blindly.
"It just goes to show how difficult it is, even for these guys, to see what's going on," Mr. Moreland said.
Greenhill, Evercore Share Sales Benefit Staff
Staff at U.S. investment-banking boutiques Greenhill & Co. and Evercore Partners made nearly $300 million from the sale of shares in their companies last week.
Managing directors and senior advisers at Greenhill sold a total of three million shares at a price of $73.53 each, according to a Securities and Exchange Commission filing. Its three most-senior executives sold a combined $124 million of stock.
Among those who sold stock according to the SEC filing were Robert Greenhill, founder and chairman, $76 million;Scott Bok, co-chief executive, $24 million; and Simon Borrows, co-chief executive, $24 million.
Evercore raised $61.5 million from selling shares. According to the SEC filing, the following amounts will be paid to senior staff for their partnership units: Roger Altman, founder and chairman, $9.6 million; Eduardo Mestre, vice chairman, $3.6 million; Pedro Aspe, co-chairman, $5.1 million.
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