The Nasdaq Composite climbed by more than 150 points on Tuesday. Investors, meanwhile, focused on some notable insider trades.
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: Dropbox, Inc. DBX CEO Andrew Houston sold a total of 162,500 shares at an average price of $22.26. The insider received around $3.62 million from selling those shares.
- What’s Happening: Dropbox recently reported better-than-expected Q3 results.
- What Dropbox Does: Dropbox is a leading provider of cloud-storage and content collaboration tools with an emphasis on individuals and SMB.
- The Trade: The Charles Schwab Corporation SCHW Co-Chairman Charles Schwab sold a total of 132,050 shares at an average price of $78.29. The insider received around $10.34 million as a result of the transaction.
- What’s Happening: The company, last month, posted upbeat Q3 results.
- What Charles Schwab Does: Charles Schwab operates in brokerage, banking, and asset-management businesses.
Have a look at our premarket coverage here .
- The Trade: Urban Outfitters, Inc. URBN Co-President and COO Frank Conforti sold a total of 10,000 shares at an average price of $25.00. The insider received around $250 thousand from selling those shares.
- What’s Happening: JP Morgan recently maintained Urban Outfitters with a Neutral and raised the price target from $23 to $24.
- What Urban Outfitters Does: Founded in 1970, Philadelphia-based Urban Outfitters is an apparel and home goods retailer that operates about 700 stores and e-commerce in North America and Europe under the Urban Outfitters, Free People, FP Movement, Anthropologie, Terrain, and BHLDN brands.
- The Trade: Schlumberger Limited SLB EVP Geographies Khaled Mogharbel Al sold a total of 57,467 shares at an average price of $54.85. The insider received around $3.15 million from selling those shares.
- What’s Happening: Schlumberger recently raised dividend from $0.175 to $0.25.
- What Schlumberger Does: SLB is the largest oilfield service firm in the world, with expertise in myriad disciplines, including reservoir performance, well construction, production enhancement, and more recently, digital solutions.
- The Trade: Electronic Arts Inc. EA Chief Accounting Officer Eric Kelly sold a total of 1,000 shares at an average price of $129.56. The insider received around $129.56 thousand from selling those shares.
- What’s Happening: Electronic Arts reported second-quarter bookings of $1.754 billion, down from last year’s $1.851 billion total.
- What Electronic Arts Does: EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile.
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