20-Jul-09 HANSON KYLE Officer 1,500 Direct Sale at $32 per share.
2-Jun-09 NELSON DENNIS H Officer 2,496 Direct Sale at $36.70 per share.
1-Jun-09 NELSON DENNIS H Officer 20,000 Direct Sale at $37.06 per share.
27-May-09 NELSON DENNIS H Officer 13,900 Direct Sale at $36.97 per share.
26-May-09 NELSON DENNIS H Officer 60,000 Direct Sale at $35.90 per share.
22-May-09 FAIRFIELD BILL L Director 6,000 Direct Sale at $34.92 per share.
Evidently thay have confidence that the stock will sustain a price greater than $40.......
maybe back 1995-97, somewhere in there, just glancing at price history. certainly hope/assume they were not granted in the money at some point, lt cap gains can be a better deal (tax) than salary, ltcg sounds better than salary too.
No confusion here...I'm an options trader and former executive with a large bank...so I'm very familiar with both options and exec stock option grants.
If you look at the reports, the CEO exercises his call options (with strikes in the single digits) simultaneously with the sale of the stock...equal lot sizes, same day, etc...His behavior is clear...What he's doing is called a "cashless exercise" of his options - He gets the difference between the share price and his strike price in cash without outlaying any cash to exercise. It's one of many ways to monetize one's call options, and, esp given the programmatic way he does it, doesn't send up any red flares for me at all. If anything, the really low strikes suggest that he's held the options for some time, and that they were probably nearing the end of their useful life.
Don't get confused guys, these are call options, right? When you are justifying the sale as an "exercise" you're referring to put options. The exercise in these instances is the purchase - not the sale. The sale is because BKE leadership think that a price range of 32-36 is acceptable for them to sell.
Yeah...there are LOTS of good reasons for exercising options...here are two:
1) ANY decent financial planner will tell you to get on a schedule for exercising options and try to stick to it...this CEO is clearly on some type of program, as he sells/exercises his options routinely (except a hiatus early this year...now THAT was probably some info!)
2) unless you know WHEN he got the options (dig back through the yearly filings and you'll find when he was granted the $5.79ish options), you can't know how much life they have left...if he's been around a while (and $5.79 options suggest he may have been), then the options MAY be set to expire...in which case only a fool wouldn't be exercising regularly.
The list goes on, but that's enough for starters.
grumpy...i've read the same thing. take insider trading with a grain of salt because these people are motivated to cash in like everyone else for whatever reason but unless it's a major change in behavior coupled with reasons for a decline it doesn't amount to much.
i was hoping bke wasn't going to go the direction it's headed. i've owned other stocks that for no good reason just aren't in fashion and all you can do is wait it out or move on.
street likes aro b/c it's products are cheap. they like anf because they think it's still hip with the kids. and apparently everyone loves urbn. so, here we sit and wait...and wait...and wait...hey is that paint drying? oooh...i see a shiny object in the corner...later...