One thing all biotech investors know is that if a binary event like clinical data goes wrong on a company relying on one specific product, then the end may not be that far behind. That was one of the events that made news this week on Wall Street, and it was a big play on our insider selling screens.
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We cover insider selling every week at 24/7 Wall St., and we like to always remind our readers that just because an individual or 10% institutional owner is selling stock, that is no cause for immediate alarm. Many top executives, and even directors, are compensated with stock and often sell just to diversify or purchase other assets.
Here are the companies that reported notable insider selling this week.
XOMA Corp. (NASDAQ: XOMA) had one of Wall Street’s top biotech investors throw in the towel this past week, and with good reason. Baker Brothers Advisors sold 11 million shares of the stock at $1.09 apiece for a total of $12 million. We covered this story in depth this week at 24/7 Wall St. The shares were trading Friday at $0.97.
Bazaarvoice Inc. (NASDAQ: BV) has a director at the company doing some very serious selling of the stock last week. That director parted with a total of 908,575 shares of the stock at $5.75. The total for the sale came to $5.2 million. The company operates as a network that connects brands and retailers to the voices of people where they shop. The stock was trading on Friday at $5.63.
J.B. Hunt Transportation Services Inc. (NASDAQ: JBHT) had the chairman of the board selling stock last week. The chairman shed 38,860 shares of the company at $82.97 per share. It provides surface transportation and delivery services in the continental United States, Canada and Mexico. The stock was trading on Friday at $82.04, so the timing looks good.
Liberty Tax Inc. (NASDAQ: TAX) had a 10% owner of the company selling shares this past week. Steven Ibbotson, who is also a director at the company, sold 144,395 shares of the stock at prices that ranged from $24.50 to $24.62. The total for the sale came to $3.2 million. The company provides tax preparation services and products in the United States and Canada. The stock was trading on Friday at $26.00, so a substantial amount was left on the table for sure.
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Insider selling continues to be light as many insiders remained locked up as earnings season continues. It is a good bet that as August comes and those windows for executives and 10% owners open back up we will see a big increase in transactions.
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