High-Profile Insider Selling Picks Up as Market Has Best Week Since 2013
One thing that went away fast when the market was in free-fall mode as the quarter started was insider selling, and who can blame them?
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One thing that went away fast when the market was in free-fall mode as the quarter started was insider selling, and who can blame them? With shares going down fast, and most bids, except for extremely liquid large-cap stocks, shaky, corporate and 10% holding insider sellers retreated to the sidelines looking for a better opportunity.
This past week’s strong rally in the equity markets saw a return to the market for some insiders looking to sell stock. We cover insider selling each week at 24/7 Wall St., and like to remind readers that insider selling is not always a sign of trouble. Often it is executives looking to diversify, or long-term holders at hedge funds looking to realize gains from early investments.
Here is a look at this week’s prominent insider selling activity.
Charles Schwab Corp. (NYSE: SCHW) saw its iconic founder and namesake sell some stock this past week. Charles Schwab, who is the chairman and a 10% owner of the company, sold 500,000 shares of the discount broker at prices that ranged from $26.24 to $26.44. The total sale came to $13.2 million. Shares of the stock were trading at $26.69 at Friday’s close.
Philip Morris International Inc. (NYSE: PM) reported earnings last week and third-quarter profit fell 8% for the giant tobacco company. The chairman of the firm decided it was time to sell some stock and parted with 140,000 shares at $86.30. The total came to $12.1 million. The stock closed trading Friday at $88.06, so some money was left on the table.
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Monsanto Co. (NYSE: MON) had a very large C-suite sale this week. The CEO of the company sold 90,000 shares of stock at $112.40. The total came to $10.1 million. Monsanto has drawn the ire of consumer groups over genetically modified food (GMO) and crops, and the headline risk looks like it could stay around for a while. Monsanto closed Friday at $113.28.
UnitedHealth Group Inc. (NYSE: UNH) had a director come in with a sizable sell order this week. Richard Burke shed 50,000 shares of the company stock at $88.49, for a total sale of $4.4 million. The stock has been a winner this year, up right at 20% since the January low. The shares ended trading on Friday at $91.64.
Carlisle Companies Inc. (NYSE: CSL) was another company with a high-placed executive selling stock. The CEO sold 25,809 shares at $85.41 apiece. The total of the sale came to $2.2 million. Carlisle shares ended the week at $85.68.
Hewlett-Packard Co. (NYSE: HPQ) was yet another high-profile company that saw insiders head to the sell window. Two executive vice presidents at the Silicon Valley giant sold a total of 50,000 shares of stock at prices that ranged from $33.85 to $33.93, for a total of $1.7 million. Shares of the iconic tech company were changing hands at $34.93 at Friday’s close.
If the market continues to rally in the weeks to come, expect more insiders to begin selling stock, especially as we head in to the final two months of the year.
ALSO READ: 6 Analyst Stocks Under $10 With Huge Upside Calls
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Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad, diverse career, including a stint as creative services director at an NBC affiliate in Austin, Texas, gives him unique insight into the financial industry.
Lee Jackson's journey in the financial industry spans more than 30 years, including nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career spanned pivotal sell-side Wall Street events, from the dot-com rise and bubble to the Long-Term Capital Management debacle, 9/11, and the Great Recession of 2008. This reflects his resilience and adaptability amid market volatility.
Lee Jackson’s practical financial industry experience, gained through a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing across various platforms. This unique combination allows him to shed light on the intricacies of Wall Street in a way only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.
Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.
