Insider Selling Jumps as Market Volatility Highest Since Summer

We cover insider selling each and every week here at 24/7 Wall St. We like to remind readers that insider selling is not necessarily a sign of trouble at a publicly traded company. Often company executives are overweighted on shares of their company’s stock. They can sell to diversify, for estate and tax planning, or even to make a large purchase like real estate.

Here is the past week’s insider selling report.

Micron Technology Inc. (NASDAQ: MU) is a very high-profile technology stock that had some insider selling this past week. The memory chip giant saw the president of the company sell 63,000 shares at $34.48, for a total sale of $2.2 million. His timing was spot on as Micron’s 52-week high is $34.85. The Thomson/First Call price target for the stock is $40.17. Shares closed trading Friday at $33.94.

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Achillion Pharmaceuticals Inc. (NASDAQ: ACHN) has tripled since May, and a 10% holder decided it was time to ring the bell and likely take a big profit. RA Capital Management sold 1.3 million shares at prices ranging from $10.05 to $10.96, for a total sale of $3.1 million. The consensus price target for the high-flying biotech stock is $13.88. Shares were trading at $10.62 on Friday’s close.

Artisan Partners Asset Management Inc. (NYSE: APAM) has been on a steady decline all year, and a director sold some stock way off the highs posted back in January. The director sold 51,231 shares at $52.01, for a total of $2.7 million. While nobody knows exactly what prompted this sale, the stock was trading in the low $70s at the start of the year. For shareholders to see a sell hit the books 30% below the highs may be a red flag. The company pays a very solid 4.2% dividend. The consensus price target is $65.25, and shares were changing hands at $51.43 as of Friday’s close.

Panhandle Oil and Gas Inc. (NYSE: PHX) returns to our insider selling screen. A company director sold 37,685 shares at prices between $60.11 and $60.62, for a total sale of $2.3 million. The company recently announced a two-for-one split that will take place for shareholders next week. That could have prompted the selling. Investors are paid a small 0.5% dividend. The consensus price target is $30, which may reflect the upcoming split as shares ended Friday at $54.52.

Federated Investors Inc. (NYSE: FII) is a huge money management firm that caught some insider selling this week. The chairman of the Pittsburgh-based firm sold a block of 64,615 shares at prices ranging from $29.49 to $29.92. The total stock sale came to $2 million. Investors are paid a very solid 3.4% dividend. The consensus price target is $29.36. With shares trading at $29.17 on Friday, the chairman’s sale was well timed.

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Other companies that had insider selling this past week include Bluebird bio Inc. (NASDAQ: BLUE) and Alleghany Corp. (NYSE: Y).