Insider Sells Nuveen Short Duration Shares

A Form 4 filing filed with the SEC on Wednesday, April 14 showed that Saba Capital Management, L.P. sold 16,401 shares of Nuveen Short Duration Credit Opportunities Fund JSD at $14.27 on Monday, Apr 12, and sold 1,435 shares at $14.31 on Tuesday, Apr 13.The transaction moved the executive's stake in Nuveen Short Duration Inc. to 1,143,967 shares. Nuveen Short Duration Credit Opportunities Fund was trading 0.1% higher from the previous closing price.

The Importance of Insider Transactions

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision.

When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Insiders who sell stock at new lows could be anticipating some capitulation moment. If the insider sells at new highs, it could point to the intention to "take some profit" and "lock in a gain."

Important Transaction Codes

Wall Street tends to focus on insider transactions which take place in the open market, viewed inside a Form 4 filing via codes P for purchase and S for sale. If the transaction was an open-market transaction, that means that the insider made a conscious decision for the company's stock moving forward.

Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attain compensation. Moreover, transaction code C indicates the conversion of an option.