QLIK Technologies Saw 2.3M Shares Sold by Insiders in 6 Days. Are They Losing Confidence?

Insiders have the most transparent view when valuing the company’s share price because they run the day-to-day business operations. This could provide a significant advantage to traders and investors when considering an investment opportunity. When Executives sell large stakes in their own company, are they losing confidence? This could be the case for QLIK Technologies QLIK.

Recent Inside Seller

QLIK CEO Bjork Lars sold 100,000 shares on 5/31/11 at $32.96 for $3.3M. VP Anthony Deighton sold 72,500 shares on 6/1/11 at $33.04 for 2.4M and another 127,500 shares on 6/2/11 at $32.04-$33.03 for $4.1M. CFO William Sorenson sold 50,000 shares on 6/2/11 at $32.25-$32.92 for $1.6M. QLIK Director Erel Margalit sold 2,000,000 shares on 6/7/11 at $31.00 for $62M. Over 2.3M shares were sold by insiders over 6 business days. This is even more significant when you look at the overall percentage of holdings.

Technical Analysis

The stock bounced off a strong resistance on 5/31 and 6/1 when the market began seeing insider selling from the CEO and VP. Even thought the long term uptrend is still intact, there is a strong possibility that the stock price will revert back to a support level prior to a continuation of the trend. This could represent a 10%-20% correction. The chart specifies key technical levels in pink.