Insider Trading Weekly Review - Doral Financial Corp.

Company’s share advanced 28 percent, the most since November 2009, to $1.33 on April 20 that captured many investors’ attention. The shares movement of this stock was also a good example from the insider trading perspective.
By: Insiderslab.com
 
May 27, 2011 - PRLog -- Doral Financial Corp.  is a diversified financial holding company with mortgage banking operations in Puerto Rico. Company’s share advanced 28 percent, the most since November 2009, to $1.33 on April 20 that captured many investors’ attention. The shares movement of this stock was also a good example from the insider trading perspective. Insiderslab.com reported the following insider trades since April:

04/21/2011: Director James Gilleran acquired 10,000 common shares at $1.31 per share on the open market. His holding increased 40% after this purchase.

04/21/2011: Executive Officer Maurice Spagnoletti acquired 16,000 common shares at $1.31 per share on the open market. His holding increased 56% after this purchase.

04/25/2011: Director Gerard Smith acquired 25,000 common shares at $1.37 per share on the open market. His holding increased 100% after this purchase.

04/27/2011: Executive Officer Maurice Spagnoletti acquired 20,000 common shares at $1.33 per share on the open market. His holding increased 45% after this purchase.

Doral Financial Share was trade above $5.00 before May 2010 and incurred a suddenly drop to around $1.00 per share. Share price appeared a trend of recoup after Doral reported net income of $3.3 million for the quarter ended March 31, 2011, compared with net losses of $36.1 million and $3.5 million for the quarters ended December 31, 2010 and March 31, 2010, respectively.
A group of Director, including Dennis Buchert, Frank Baier, James Gilleran and Gerard Smith, became to new insiders of Doral since March this year. These four insiders acquired in total of 135,000 common shares by either stock grant or subsequent open market purchases. According to the Insider Trading Analysis Rules of Thumb , the increasing number of insider buyers signals the upward trend of the stocks.

It is pretty common to see an insider filed a group of trades in a very short period. Maurice Spagnoletti is the Executive Officer of Doral’s Retail and Banking Operations. He acquired 36,000 common stocks in two times on a narrow period in one week. Insider Trading Analysis Rules of Thumb advises investors to focus on clusters of purchases/sells settled by single insiders, or group of trades made by different insiders. It is more reliable to watch different insiders to settle same direction transactions in a short period.

Doral’s insiders earned an average holding return of 44% so far. Read (DRL) insider trading report at http://www.insiderslab.com/Notable/DRL/ .

Report Editor: Kelly Liu in Vancouver at kelly@insiderslab.com

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InsidersLab provides U.S. Insider Trading Research and Analysis to investors. We strive to aid investors, analysts, advisors and institutions in achieving optimal portfolio performance returns by providing more transparency in the insiders market.
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Tags:Doral Financial, Drl, Insider Trading
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