People have to sell their options before they expire or they lose them. I don't know how many times I've explained it on this board. Its called a "cashless exercise", the shares are bought and sold at the same time. Any professional money manager will say insider sales are much less important than insider buys.
Genesis, you are mistaken. When options are about to expire, you don't always have to go in for a cashless exercise.
Let's assume Lakshmi Narayan sold 62,000 shares because his options were expiring. This means the options would be like 10 years old. So the grant price would be like $2 per share. If he truly believed that the stock price is going to increase, he could have exercised the options by paying $120,000 to BUY the 62,000 shares from the company and keep them. $120K is not a whole lot of money for him - people on this board have portfolios larger than that.
What is interesting is that he chose to sell. If you see his selling record, Lakshmi is remarkable at picking crests and selling.
Again, this was not a sale. When you look at "Insider Transactions" and note the difference between a "disposition" and a "sale". The description of the transaction as a "disposition" is the indication of a gift.
A director bought 2000 shares at market in May. He dispersed them as a gift on Oct. 5. He still holds 220,794 shares. My thinking is, if he is holding that many shares he probably does know what is in store.
Good point. Fellow has over 300K shares. And the 2K disposition was a gift. In view of this - yes, there is nothing to worry about.
PS - I always keep an eye out for insider trading. This was not a "nice try" to do anything. Look at how Lakshmi Narayan has dumped his stocks at $94 and $88. His previous sale was 62,000 shares at $88. Then how can you say the target is over $90? I don't buy it. And CFO sold at $94 level...so a target of $100 is simply impossible...atleast in the next 6 months.