General Counsel Of Upstart Holdings Trades $7.2M In Company Stock

Alison Nicoll, General Counsel at Upstart Holdings UPST, made a large buy and sell of company shares on October 27, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Alison Nicoll exercised options to purchase 22,500 Upstart Holdings shares for $0 on October 27. They then sold their shares on the same day in the open market. They sold at prices ranging from $313.69 to $334.45 to raise a total of $7,217,454 from the stock sale.

Following the transaction, Nicoll still owns 14,230 shares of the company, worth $4,761,856.

Upstart Holdings shares are trading up 3.91% at $334.63 at the time of this writing on Monday morning.

Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Upstart Holdings's Insider Trades.

Posted In: NewsInsider TradesTrading IdeasAlison NicollBZI-ITInsider sells
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