He sold 270,690 shares this week. Some of it was option related, but there was additional sold as well.
Further, the options don't expire until 2018 - so there was really no immediate need to exercise at this time.
They were getting this stock at about a 60% discount to current market price, but they weren't getting it free. So, among the reasons to sell the stock is (1)You need the money from the sale to exercise the option. (2)The gains from exercising the option are taxable immediately under California's AMT. There goes another 9.5%. You'llneed some cash to pay that, too.(3) There are plenty more options where those came from.
In fact, very few executives choose to hold onto stock after exercising options.
Sweet..."The approval was based on Phase II trial data, which also means that the company can gain from sales immediately instead of having to wait for a confirmatory Phase III trial. Analysts estimate the market potential of the drug at almost $700 million annually by 2016, with peak sales of $1.5 billion. This is a substantial increase from last year's sales of $447 million.
It is a trivial event that Coles sold 250K shares. ONXX has had an amazing run and I have made a lot of money on ONXX, and I am happy that Coles was able to cash in too. I hope that Regorafenib gets approved and ONXX has another nice rise so Coles can sell more shares and a new round of people can cry about the sales.
Yes pal I admit that I am an amateur. I am surprised that you did not also accuse me of being a short. Since you know the history of insider transactions so well, please tell us when was the last time that the CEO sold such a large number of shares in one day.
[No matter how you put it,]
you still don't believe me. Must be an amateur.
[the stock is down over 2%.]
Better go hide underneath your bed.
[I recognize that it might be a pure coincidence,]
You don't believe this qualification.
[but the CEOs selling all at those shares once certainly did not help.]
Nor did you read, believe, or investigate what I said earlier.
[His action was at best clumsy.]
You mean your thinking has been clumsy. You don't want to acknowledge what Coles does on a regular basis but want to assert there's a causal connection between his sale two days ago, and what happened today.
The CEO should have known that unloading a large number of shares (in fact s significant portion of his shares) all at once would generate a negative signal--i.e. that perhaps he knows something. It shows lack of concern for the price of the stock.
Coles regularly accumulates say, 300K shares, as compensation and then sells it. He may have had a substantially larger position in the distant past, but he's turning over what he gets now. Given that he gets a large cash salary there's no need to hold equity. Also, he may have a compensation clause that says he gets x% when some milestone on a developmental drug is reached, where x% represents some multiple of the above turnover rate, which would position this x for full capital appreciation.
Form 4 shows Coles acquired about 250k shares as option pay about 6 months ago, exercised, and sold 270k. Coles regularly acquires and sells even outside of 10b5. The KT boundary exists at the end of this year. Makes a lot of sense to take the gain this year.
The sale was fractionized and easily absorbed by the market without concession.