usually are non-informative. Stocks sold by insiders don’t go down, on the average. This is because most insider sales transactions are done for diversification or demand for liquidity. So, the lists of largest insider sales published in the Wall Street Journal or Barron’s really don’t mean much.
Recent research on insider selling
has shown that stocks sold under the 10b5-1 plans have large negative abnormal returns. The magnitude of the abnormal returns is about 70 basis points per month calculated by using Carhart’s four factor model
. Insider Monkey, your source for free real-time insider trading
data, compiled the list of 10 stocks insiders are selling like crazy
under 10b5-1 plans over the past few weeks:
1. Netflix (NFLX): Netflix insiders have been exercising their options and selling shares immediately for quite some time now. Theodore Sarandos sold more than 25,000 shares
and netted nearly $4 Million in November. Barry McCarthy exercised 100,000 options
and sold them for more than $200 each. He netted more than $17 Million. You can check other Netflix insider sales
2. Keynote Systems Inc (KEYN): Donald Aoki sold more than 75,000 shares
this week. There are several other KEYN insiders selling
3. MetroPCS Communications Inc (PCS): Roger Linquist sold 40,000 shares
under a 10b5-1 plan adopted on November 8th
, 2010. There are several other large insider sales in PCS
4. Nanometrics Inc (NANO): Norman Coates, a director of Nanometrics
, sold 50,000 shares under a 10b5-1 plan on Tuesday. Several other insiders sold NANO
shares over the past few months.
5. The E. W. Scripps Company (SSP): Richard Boehne sold more than 75,000 shares
at $10 under a 10b5-1 plan adopted this summer. Several other insiders have been selling as SSP
climbed more than 30% over the past 3 months.
6. Citrix Systems Inc (CTXS) : David Henshall, the CFO of Citrix
, exercised 50,000 options and netted around $1.5 Million under a 10b5-1 plan. (See other insider sales in CTXS
7. Sempra Energy (SRE): Debra Reed exercised and sold more than 40,000 options
. She netted more than $1 million.
8. Martha Stewart Living Omnimedia Inc (MSO)
Martha Stewart sold 83,333 shares under a 10b5-1 plan. We think she is being cautious this time. Charles Koppelman is the only other insider who sold
over the past three months.
9. Varian Medical Systems (VAR): Dow Wilson
sold nearly 50,000 shares under a 10b5-1 plan.
10. Qualcomm (QCOM): There are several insiders selling QCOM
shares under 10b5-1 plans.