Insiders must first file before trading. They can do certain things, like enter into swaps (e.g., enter into a one year agreement to swap the return of IBM with the S&P 500) or hedge/collar their positions.
Some place shares into a charitable remainder trust or CRT. The CRT can then sell the shares without paying taxes, and reallocate the money offering diversification. The donor gets a tax deduction and the income stream from the redeployed assets. The charity gets the remainder of the proceeds at death. The donor usually purchases life insurance with the money saved from the tax deduction as a "wealth replacement" strategy. There are also more options for rich insiders.
The insiders here have generous stock options and they absolutely must report when exercised.
I didn't anwer your question. They can hedge by shorting against the box, but why? That gives a bad sign to investors, will get them fired by the BOD, and will insure they will never work again. That also asumes the price will rise again at some future time (otherwise you make a "planned sale"), and that will invite lawsuits.