Just curious about your take on these insider sales? I've seen about 7 now in the last week or so, some as low as selling for a 50 cent gain. Now these last 3 or 4 sold for around $32 or thereabouts after paying $29.94 for them. Now you seem confident in the shareprice going higher, why IYO are these people selling for a fairly small gain. If I remember correctly one insider bought at $29.94, sold at $30.44. If just that person had held on for a few more days they could have sold at almost 2 dollars higher if they sold today. Are they obligated to sell these shares the day they exercise them? Just curious about your opinion on this. Thanks !
Insiders frequently don't know where share price is going. They sell to get cash for any number of reasons related to their personal life. These options may have just become worth something with the recent price increase, so they sold to get some $.
I assume they were options that allowed them to buy at $29.94. My question to amazing was since he seems confident in the shareprice going higher, why would these insiders who I would think talk to others sell for such a small gain if they felt like amazing does? I would have to find it again but I think one of those people bought and then sold either 70,000 or 100,000 shares. At 50 cents, sure they realized a gain of around $50,000 selling at $30.44 but if they waited just about one week they could have sold right now for about another $200,000. Do they not have the confidence that amazing seems to have? That is what I was curious about and amazing answered it and gave me his opinion. I just wanted his opinion about the sales. JMO
Unless I see the CEO massively selling, then I really do not worry about it. Some time ago I was at a hotel bar with a president of the US portion (amounting to 70% of global sales) of a multi-national company. He mentioned how he saw his company stock rise from under $2 to over $10 within 6 months. He cashed out all his employee stock options at $10 and then watched the shares keep climbing higher. He then bought back the shares at $15 and watched the shares go above $18, but he did not sell. He was a little worried at the time as the shares were then trading at $13, but he felt he had enough profit from the stock options to cushion a loss. And this guy oversaw 70% of sales at this company and he did not know why his company stock was trading higher or lower.