When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales.
Apple
The Trade:Apple Inc.
AAPL Senior Vice President Luca Maestridisposed a total of 165829 sharesat an average price of $148.62. The insider received $24,645,505.98 as a result of the transaction.
What’s Happening:Apple recently unveiled the "completely reimagined" MacBook Pro powered by the all-new M1 Pro and M1 Max — the first pro chips designed for the Mac..
What Apple Does:Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), AirPods, and TV boxes (Apple TV), among others.
Dell Technologies
The Trade:Dell Technologies Inc.
DELL Chief Marketing Officer Allison Dewsold a total of 77182 shares at an average price of $110.43. The insider received $8,523,125.75 from selling those shares. The insider also bought a total of 64387 shares.
What’s Happening:Founder, Chairman, and Chief Executive Officer of Dell, Michael Dell, says that blockchain is probably underrated, implying that the full potential of the now decade-old technology has yet to be tapped.
What Dell Technologies Does:Dell Technologies, born from Dell's 2016 acquisition of EMC, is a leading provider of servers and storage products through its ISG segment; PCs, monitors, and peripherals via its CSG division; and virtualization software through VMware.
AutoNation
The Trade:AutoNation, Inc.
AN owner Cascade Investment Llc, William Gates III sold a total of 209195 shares at an average price of $118.06. The insider received $24,697,424.21 as a result of the transaction.
What’s Happening:AutoNation reported third-quarter FY21 sales growth of 18% year-on-year, to $6.38 billion, beating the analyst consensus of $6.31 million.
What AutoNation Does:AutoNation is the largest automotive dealer in the United States, with 2020 revenue of $20.4 billion and about 230 dealerships and over 300 locations including collison centers.
Helmerich & Payne
The Trade:Helmerich & Payne, Inc.
HP President and CEO John Lindsay sold a total of 9000 shares at an average price of $35.00. The insider received $315,000.00 from selling those shares.
What’s Happening:Morgan Stanley recently maintained Helmerich & Payne with an Equal-Weight and raised the price target from $30 to $32.
What Helmerich & Payne Does:Helmerich & Payne has the largest fleet of U.S. land drilling rigs. The company's FlexRig line is the leading choice to drill horizontal wells for production of U.S. tight oil and gas.
California Resources
The Trade:California Resources Corporation
CRC owner Goldentree Asset Management Lp, Goldentree Asset Management Llc, Steven Tananbaum sold a total of 100238 shares at an average price of $44.47. The insider received $4,457,926.26 from selling those shares.
What’s Happening:Keybanc recently maintained California Resources with an Overweight and raised the price target from $47 to $48.
What California Resources Does:California Resources produces oil and natural gas in California. At the end of 2018, the company reported net proved reserves of 618 million barrels of oil equivalent.