Investing

Insider Selling Jumps as Transaction Windows Open: MSCI, Six Flags, Align Technology, Shake Shack and More

Lee Jackson

Published: May 8, 2016 10:15 am

Last Updated: January 13, 2020 9:43 am

With the first-quarter earnings parade nearing an end, so are the closed windows that are put in place around earnings announcements that prevent insiders from buying or selling company stock. The black-out periods restrict shareholders from selling shares during a window that falls before, and sometimes extends after, earnings are reported. One thing is for sure, we are starting to see some volume increases in insider transactions.

We cover insider selling every week at 24/7 Wall St., and we like to remind readers that just because an individual or 10% institutional owner sells 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 companies that reported notable insider selling last week.

MSCI Inc. (NYSE: MSCI) had a director sell a large block of shares this past week. Value Act parted with a total of 298,200 shares of the company at prices that ranged from $74.59 to $75.87. The total for the sale came in at $22 million. MSCI offers content, applications and services to support the needs of institutional investors in investment processes worldwide. The shares traded on Friday’s close at $75.38.

Six Flags Entertainment Corp. (NYSE: SIX) saw a director at the company selling stock. That director shed 175,000 shares at prices that ranged from $59.90 to $60.10 apiece. The total for the sale was posted at $11 million. Six Flags Entertainment owns and operates regional theme and water parks under the Six Flags brand name. The stock closed on Friday at $58.41, so a well-timed sale.

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