J Mcnamara sold 77% of his position by exercising options expiring between 5 and 7 years on August 20 th at 224$......and the CFO (HE KNOWS !) Marshall Mohr sold 85% of his position by exercising options expiring in 6 1/2 years on July 27 TH at 218$. Stock is up 195% from its low of 87$ in January. Greatest short since the crooks at Krispy Kreme Doughnuts
The metric that he sold 77% of his "position" is hugely misleading. Not necessarily your fault because it's a common misconception about how these numbers are reported. That number means that he sold 77% of the actual shares he owns at any given time. The more important way to view this is his exposure to ISRG. In that light his "position" is shares AND options held. How insiders manage this total exposure varies from company to company and individual to individual. In other words, some individuals exercise their options and immediately sell the resulting shares. A transaction like that would be reported as thought they sold 100% of their position even if they still held tens of thousands of vested options and obviously still had a large stake in the company.
McNamara sold 6000 of the 90,000 options he was holding and gets about 50,000 additional new options each year. So to say that he sold 77% of his position gives a very misleading impression of his feelings about and stake in the future potential of ISRG.
Virtually every insider has more shares and more exposure to ISRG than they did last year.
Insiders sell for many different reasons...so its ok....ie; sell to diversify their investments, tax reasons, pay for kids college, give presents (you wish it were you) take trips, buy cars, or invest in other assets, personal property or real property...The REAL thing to watch is when insiders BUY...they ONLY do that for one reason; they think the stock is cheap...