Organovo Holdings Falling on Insider Sales
UPDATE: Some new details about the 10B5-1 plans were brought to our attention from Oranovo's investor relations team. As such, we have changed the article below to reflect them.
Organovo Holdings (NASDAQ: ONVO) shares were dipping this morning after the company filed an SEC from 8-K prior to Thursday's close.
The form detailed out a series of 10b5-1 plans, which allow an executive to sell shares of the company gradually in order to diversify their personal holdings.
Plans listed in the form 8-K were from Keith Murphy, the company's President and CEO, and Michael Renard, who is the company's Executive Vice President of commercial operations. Mr. Murphy's plan was disclosed in October 2013.
Insider sales from company executives at the level of Murphy can often put fear into shareholders, who sometimes interpret the move as a lack of confidence in the share price.
Other 10b5-1 plans came from the company CFO, Barry Michaels, the company CTO and EVP of research ,Sharon Presnell, and the Chief Strategy officer, Eric David, which were fully executed as of December 20th 2013.
Organovo has been the subject of a recent Citron research report, which accuses the company of "boiler room action". The report can be read here.
The filings for insider sales caused shares to dip 2.23 percent in the pre-market to $9.64.
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