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. For more, check out Benzinga's insider transactions platform.
General Mills
- The Trade: General Mills, Inc. (NYSE:GIS) Chief S&G Officer Dana M McNabb disposed a total of 20743 shares at an average price of $68.86. The insider received $1,428,458.16 as a result of the transaction. The insider also bought a total of 7190 shares.
- What’s Happening: General Mills, last month, reported worse-than-expected Q2 EPS results.
- What General Mills Does: General Mills is a leading global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and superpremium ice cream.
Shutterstock
- The Trade: Shutterstock, Inc. (NASDAQ:SSTK) Executive Chairman Jonathan Oringer sold a total of 39879 shares at an average price of $97.56. The insider received $3,890,664.21 from selling those shares.
- What’s Happening: The company’s shares dropped around 10% over the past month.
- What Shutterstock Does: Shutterstock Inc is a U.S.-based company that is primarily engaged in the provision of digital content.
Jabil
- The Trade: Jabil Inc. (NYSE:JBL) Chairman and CEO Mark Mondello sold a total of 12000 shares at an average price of $70.20. The insider received $842,413.55 as a result of the transaction.
- What’s Happening: Jabil, last month, reported a new partnership with Carnival to manufacture and fulfill Princess Medallion cruise ship.
- What Jabil Does: Jabil Inc is a United States-based company engaged in providing manufacturing services and solutions. It provides comprehensive electronics design, production and product management services to companies in various industries and end markets.
- The Trade: Twitter, Inc. (NYSE:TWTR) Chief Financial Officer Ned Segal sold a total of 5000 shares at an average price of $39.79. The insider received $198,950.00 from selling those shares.
- What’s Happening: Aleph Group recently said Twitter made a minority investment in the company.
- What Twitter Does: Twitter is an open distribution platform for and a conversational platform around short-form text (a maximum of 280 characters), image, and video content. Its users can create different social networks based on their interests, thereby creating an interest graph.
Alphabet
- The Trade: Alphabet Inc. (NASDAQ:GOOG) Director Sergey Brin sold a total of 8300 shares at an average price of $2,690.33. The insider received $22,329,735.11 from selling those shares.
- What’s Happening: Google recently announced the acquisition of Siemplify.
- What Alphabet Does: Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue.
