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.
Toast
- The Trade: Toast, Inc. COO and Co-President Aman Narang disposed a total of 1025750 shares at an average price of $32.29. The insider received $33,125,358.74 as a result of the transaction.
- What’s Happening: Morgan Stanley, last month, upgraded the stock from Equal-Weight to Overweight and announced a $53 price target.
- What Toast Does: Toast Inc is a cloud-based, end-to-end technology platform purpose-built for the entire restaurant community. Its platform provides a suite of SaaS products, financial technology solutions including integrated payment processing, restaurant-grade hardware, and a broad ecosystem of third-party partners.
HP
- The Trade: HP Inc. President and CEO Enrique Lores sold a total of 34000 shares at an average price of $37.84. The insider received $1,286,560.00 from selling those shares.
- What’s Happening: The company’s stock gained 5% over the previous month.
- What HP Does: HP Inc. is a leading provider of computers, printers, and printer supplies.
Brinker International
- The Trade: Brinker International, Inc. CEO and president Wyman Roberts sold a total of 13665 shares at an average price of $36.87. The insider received $503,828.55 as a result of the transaction.
- What’s Happening: Barclays, last month, maintained Brinker International with an Equal-Weight and lowered the price target from $44 to $41.
- What Brinker International Does: Brinker International Inc operates casual dining restaurants under the brand's Chili Grill and Bar (Chili's) and Maggiano's Little Italy (Maggiano's). Chili's falls in the Bar and Grill category of casual dining.
Seagen
- The Trade:Seagen Inc. Chief Medical Officer Roger D Dansey sold a total of 8675 shares at an average price of $152.58. The insider received $1,323,647.98 from selling those shares.
- What’s Happening: Seagen and Astellas Pharma, last month, said European Medicines Agency's Committee for Medicinal Products for Human Use gave positive opinion for company’s PADCEV.
- What Seagen Does: Seagen Inc. (formerly known as Seattle Genetics) is a biotech firm that develops and commercializes therapies to treat cancers. Seagen's therapies are based on antibody-drug conjugate technology that utilizes the targeting ability of monoclonal antibodies to deliver cell-killing agents directly to cancer cells.
Alphabet
- The Trade: Alphabet Inc. SVP, Chief Business Officer Philipp Schindlersold a total of 3834 shares at an average price of $2,845.76. The insider received $10,910,649.56 from selling those shares.
- What’s Happening: Alphabet’s Google Cloud recently said it acquired 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.