When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales.
Alcoa
- The Trade:Alcoa Corporation EVP and CFO William F Oplinger disposed a total of 166369 shares at an average price of $48.40. The insider received $8,051,610.76 as a result of the transaction. The insider also acquired a total of 74209 shares.
- What’s Happening:Alcoa reported the purchase of group annuity contracts for certain US pension plans.
- What Alcoa Does:Alcoa is a vertically integrated aluminum company whose operations include bauxite mining, alumina refining, and the manufacture of primary aluminum.
HubSpot
- The Trade:HubSpot, Inc. Chief Technology Officer Dharmesh Shah sold a total of 22000 shares at an average price of $837.96. The insider received $18,435,199.05 from selling those shares.
- What’s Happening:The company recently posted upbeat quarterly results.
- What HubSpot Does:HubSpot provides a cloud-based marketing, sales, and customer service software platform referred to as the growth platform.
Cryoport
- The Trade:Cryoport, Inc. 10% owner Blackstone Tactical Opportunities Associates III - NQ L.P.sold a total of 500000 shares at an average price of $76.00. The insider received $38,000,000.00 as a result of the transaction.
- What’s Happening:Cryport recently reported a proposed registered direct placement of common stock.
- What Cryoport Does:CryoPort Inc is a provider of temperature-controlled supply chain for the life sciences industry by providing a unique and evolving platform of critical products and solutions including advanced packaging, informatics, specialty logistics services, biostorage services, and cryogenic life sciences equipment.
Mondelez International
- The Trade:Mondelez International, Inc. Director Trian Fund Management Lp sold a total of 5469062 shares at an average price of $62.31. The insider received $340,801,052.15 from selling those shares.
- What’s Happening:Mondelez International, earlier during the month, reported better-than-expected Q3 results and raised guidance.
- What Mondelez International Does:Mondelez has operated as an independent organization since its split from the former Kraft Foods North American grocery business in October 2012.