Huge Real Estate and Health Care Trades Highlight Insider Selling: Regency Centers, Allegan, UnitedHealthcare, Wyndham and More
In a week that offered up almost everything, and was completed by another outstanding nonfarm payroll report, the insider activity that had been heavily leaning toward the sellers started to balance out. While the insiders selling shares still came in higher than the buyers, for one of the first times in 2017 it seemed to balance out some. One thing is for sure, if the market continues higher, the sellers may very well start to dominate again.
We cover insider selling every week at 24/7 Wall St., and we like to remind our 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 portfolios or purchase other assets.
Here are companies that reported notable insider selling this past week.
Regency Centers Corp. (NYSE: REG) had a huge seller hitting the bid last week. The vice chairman of the real estate investment trust sold an incredible 2.8 million shares of the stock at $68.45 per share. The total for the trade was a staggering $192 million. The stock close trading on Friday at $62.58, so the timing looks good. The 52-week trading range for the shares is $42.40 to $82.44. The Wall Street consensus price target is $75.67.
One company that has been on a roll this year is Allergan PLC (NYSE: AGN), and a director at the company has taken advantage of it. The board member sold 70,000 shares of the specialty pharmaceutical giant at prices that ranged from $245.21 to $248.45 apiece. The total for the sale was listed at $17 million. The stock closed on Friday at $241.15, so another well-timed sale. The 52-week trading range is $184.50 to $299.11, and the consensus price objective is $268.11.
UnitedHealth Group Inc. (NYSE: UNH) is another health care stock that saw some insider action on the sell side. A director at the company sold some 50,000 shares at prices between $167.30 and $167.65. The total for the trade was set at $8 million. The stock closed the day last Friday at $169.98, in a 52-week range of $122.22 to $169.36. The consensus price objective is $183.95.
Clean Harbors Inc. (NYSE: CLH) had the man at the top selling some stock last week. Founder and CEO Alan McKim sold 94,469 shares of the stock at prices that ranged from $57.06 to $57.47. The proceeds from the sale were an even $5 million. The stock closed on Friday at $55.81, in a 52-week range of $43.03 to $59.17. The consensus price target is $58.56.
The chief financial officer at Wyndham Worldwide Corp. (NYSE: WYN) was selling stock this past week. Thomas Conforti parted with 25,900 shares of the hotel giant at $82.41 apiece. The total for the trade was posted at $2 million. The shares closed Friday at $82.65. The 52-week range is $62.60 to $86.72, and the consensus price target is $90.
These companies also reported insider selling this past week: CBOE Holdings Inc. (NASDAQ: CBOE), E.W. Scripps Co. (NYSE: SSP), Humana Inc. (NYSE: HUM), Pinnacle West Capital Corp. (NYSE: PNW) and Wells Fargo & Co. (NYSE: WFC).
While the selling remained steady, and as we noted, higher than those insiders buying, the lopsided totals seem to have subsided at least for now. One thing that could help this market would be either a solid sell-off or a long sideways move. Either way, gains need to be consolidated, so it’s likely the sellers will continue to dominate.