When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out Benzinga's insider transactions platform.
- The Trade: Synopsys, Inc SNPS Co-CEO Chi-Foon Chan disposed a total of 12318 shares at an average price of $343.13. The insider received $4,226,689.21 as a result of the transaction.
- What’s Happening: Synopsys recently reported better-than-expected Q4 EPS and sales results.
- What Synopsys Does: Synopsys was founded in December 1986 (called Optimal Solutions until 1987) and is a market leader in electronic design automation software. EDA is used to automate the design and verification of integrated circuits or larger chip systems.
- The Trade: Curtiss-Wright Corporation CW Executive Chairman David Adams sold a total of 10488 shares at an average price of $133.19. The insider received $1,396,869.45 from selling those shares.
- What’s Happening: Morgan Stanley, last week, initiated coverage on Curtiss-Wright with an Overweight rating and announced a price target of $180.
- What Curtiss-Wright Does: Curtiss-Wright Corporation delivers engineered products and services to commercial, defense, power generation, and other industrial markets.
- The Trade: Nuance Communications, Inc. NUAN CEO Mark Benjamin sold a total of 502341 shares at an average price of $55.03. The insider received $27,644,801.76 as a result of the transaction.
- What’s Happening: The company, last month, posted weak quarterly results.
- What Nuance Communications Does: Nuance Communications Inc is the pioneer in conversational AI innovations that bring intelligence to everyday work and life. The company delivers solutions that understand, analyze, and respond to people amplifying human intelligence to increase productivity and security.
- The Trade: Alphabet Inc. GOOG Director Sergey Brin sold a total of 7763 shares at an average price of $2,842.67. The insider received $22,067,635.91 from selling those shares.
- What’s Happening: NICE and Google Cloud recently announced collaboration to drive smarter digital conversations and improve self-service experiences.
- What Alphabet Does: Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue.
- The Trade: PriceSmart, Inc. PSMT Director Robert E Price sold a total of 20000 shares at an average price of $74.18. The insider received $1,483,645.37 from selling those shares.
- What’s Happening: Pricesmart, during October, reported worse-than-expected Q4 EPS results.
- What PriceSmart Does: Pricesmart Inc is a company principally engaged in operating U.S.-style membership shopping warehouse clubs that offer consumer goods at low prices.
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