Huge Blue Chip Tech Trade Highlights Insider Selling: Microsoft, Diamond Resorts, PulteGroup, Tupperware, JB Hunt and More
The tsunami of insider selling that was kicked off when the market broke through to all-time highs slowed down a little last week, but there were still some pretty big waves of executives and institutional holders selling shares. Toss in the earnings season starting to wind down, and the volume was still higher than we have seen for most of 2016.
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 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 companies that reported notable insider selling last week:
A director unloaded Microsoft Inc. (NASDAQ: MSFT) shares big time this past week. Mason Morfit sold a reported 18 million shares of the software and technology giant at prices that ranged from $55.95 to $56.38. The total for the huge sale was posted at a staggering $1,010,110,000. The shares closed Friday at $56.68.
Morfit is a CFA and president of ValueAct Capital. He was appointed on the board of directors of Microsoft in March of 2014. Microsoft also announced more layoffs last week.
Diamond Resorts International Inc. (NYSE: DRII) had a 10% owner come in last week with two big sales of the stock. Best Amigo Partners sold a total of 952,811 shares of the stock at prices that ranged from $30.15 to $30.24. The total for the two sales was a gigantic $29 million. The stock closed Friday at $30.18.
The company operates in two segments: Hospitality and Management Services, and Vacation Interest Sales and Financing. It operates 109 resort properties, 250 affiliated resorts and hotels and 20 cruise itineraries. It agreed to be bought out last month.
The chief executive officer at homebuilder PulteGroup Inc. (NYSE: PHM) made a large sale this past week. Richard Dugas parted with a total of 243,115 shares at prices that ranged from $21.89 to $22.09. The total for the sale was posted at $6 million. The stock closed Friday at $21.18.
The company is involved in the acquisition and development of land primarily for residential purposes, as well as the construction of housing on such land. It offers various home designs, including single-family detached, townhouses, condominiums and duplexes under the Centex, Pulte Homes, Del Webb, DiVosta Homes John Wieland Homes and Neighborhoods names.
Selling Tupperware Brands Corp. (NYSE: TUP) shares this past week were both the CEO and a director. The pair sold a total of 160,000 shares of stock at prices between $62.23 and $62.86 apiece. The total for the trade was posted at $10 million, and the stock closed Friday at $62.68.
The company operates as a direct-to-consumer marketer of various products across a range of brands and categories worldwide. it engages in the manufacture and sale of design-centric preparation, storage and serving solutions for the kitchen and home, as well as a line of cookware, knives, microwave products, microfiber textiles, water-filtration related items and an array of products for on-the-go consumers under the Tupperware brand name.
J.B. Hunt Transport
Two J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) executives were selling stock this past week. An executive vice president sold a total of 18,122 shares at $81.50 apiece. The total for the sale was posted at $2 million. Also, the board chair shed a block of 20,000 shares at $81.18 a share. The total for that trade was about $2 million as well. The shares closed Friday at $83.13.
The company provides surface transportation and delivery services in the continental United States, Canada and Mexico. It operates through four segments: Intermodal, Dedicated Contract Services, Integrated Capacity Solutions and Truck. It recently posted disappointing quarterly numbers.
These companies also reported insider selling last week: Illinois Tool Works Inc. (NYSE: ITW), Insteel Industries Inc. (NASDAQ: IIIN) and Sonoco Products Co. (NYSE: SON).
While the volume was lower, the windows that have been closed to executives during earnings may soon open back up. It wouldn’t surprise us to see continued selling in August.