When you know wall street is expecting forward outlook for next qtr of 137 million and you are going to report 80 million, then you might want to sell ahead of that. What bugs me is shouldnt they have warned prior to earnings that outlook is going to be down. I mean we are not talking a difference of 10 million here, but 57 million. They got their money and us longs are now stuck holding the bag.
Insiders can't do that. What they can do is say I want to sell this much stock at this time every month. They can also apply filters like the price and how many shares sell at each price band. But they cannot change their trading plans in the same period the stock trades. This is to prevent exactly what you'r talking about.