The big market sell-off got some extra additional selling as some insiders decided it was time to lighten up on their holdings of their own companies. One interesting note from this week, while it appears that there was more insider buying than selling, the sellers were very big sellers. For investors looking for some forward guidance, that may be a slightly positive sign going forward. If market weakness kept some from cashing in, there may be upside ahead.
We track insider trading for our readers as it is sometimes a good guide for stocks that are either reaching high valuations, or have issues that are bogging down growth and profitability. Here are some of the key companies with insider selling transactions seen this last week.
Delta Air Lines Inc. (NYSE: DAL), like most of the airlines, has done very well this year for shareholders. One of the executive vice president at the company sold 65,000 shares at $37.13 for a total of $2.4 million. Delta was trading late Friday at $35.20.
Equity Residential (NYSE: EQR) saw massive inside selling trades this week at the very top. The Chairman and Vice Chairman of the company sold 2 million shares of stock at prices ranging from $64.04 to $65.32. The take home from this gigantic sale was $132 million. The stock was trading late Friday at $64.41.
HomeAway, Inc. (NASDAQ: AWAY) has sold off big from its February highs , and a director sold 875,000 shares at a price of $33.08 for a total of $29 million. Selling that much stock at this level may be a touch unnerving for current shareholders. The stock was trading Friday at $33.38.
Trinity Industries, Inc. (NYSE: TRN) saw the CEO and a senior vice president take advantage of what has been a very good year for the company, and sell 443,000 shares at prices ranging from $43.49 to $44.02. The sale brought in a total of $19.4 million for the pair. The shares were trading late Friday at $41,49.
Meredith Corporation (NYSE: MDP) has had an up-and-down year, and a director took advantage of an upswing and sold 200,000 shares of stock at $45.08, for a total of $9 million. The media company was trading late Friday at $45.92.
3M Company (NYSE: MMM) is one of the Dow Jones Industrial Average components that has lagged this year. The CEO still took the opportunity to sell 54,226 shares at prices that ranged from $139.69 to $139.82 for a total of $7.6 million. Shares were trading late on Friday at $139.42.
The Ultimate Software Group, Inc. (NASDAQ: ULTI) is down sharply from the highs posted back in the late winter, but the has stock bounced smartly off the lows in April after the company’s earnings disappointed. The CEO sold 50,000 shares at $136 for a total trade of $6.8 million. Shares were trading Friday at $133.75.
BorgWarner Inc. (NYSE: BWA) was having a very solid year, but the stock rolled over after less than stellar second quarter numbers and a very weak forward outlook. A vice president at the company decided it was time to sell 60,000 shares at $61 each. The total come to a tidy $3.7 million. BorgWarner stock was trading at $61.01 Friday.
Some big profits were taken on some high profile stocks. Investors may want to review their holding to see if any of these stocks are residing in their portfolios.
As a reminder, just because an insider is selling it does not automatically bring up a red flag – it could just be diversification, tax planning, or to make a purchase or other investment.