High-Profile Insider Selling Picks Up as Market Has Best Week Since 2013

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By Lee Jackson Updated Oct 25, 2014 at 11:20 AM EDT · Published Oct 25, 2014 at 9:15 AM EDT

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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.

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