What Triggered the Heavy Insider Selling Activity at These 3 Companies?

We can refocus our discussion on Lear Corporation (NYSE:LEA), an auto-parts maker that saw one of its directors sell stock last week. Donald L. Runkle, who has been a Director of Lear since 2009, unloaded 5,206 shares on Thursday at prices ranging from $124.23 to $124.73, trimming his stake to 7,844 shares. The shares of the supplier of automotive seating and electrical distribution systems are currently trading at their all-time high of slightly over $125, after having gained 27% year-to-date. Lear Corporation (NYSE:LEA)’s recently-published third quarter earnings report saw it deliver sales of $4.3 billion, which were up from $4.2 billion reported a year ago. Similarly, the company’s net income came to $181 million, compared to $140 million reported last year. Lear Corporation also increased its full-year earnings and cash flow guidance, all of which has propelled its stock to new levels; thus, it is no surprise to see insiders unload their holdings at the moment. However, the stock is still trading cheaply, bearing in mind its trailing P/E ratio of 12.80. Ken Griffin’s Citadel Investment Group was one of the top equity holders of Lear Corporation (NYSE:LEA) at the end of the second quarter, with 1.39 million shares.

Last but not least, Comcast Corporation (NASDAQ:CMCSA) has also seen unusually high insider selling activity recently. Brian L. Roberts, Chairman, President and Chief Financial Officer, offloaded 106,883 shares of Class A common stock on Thursday at a weighted average price of $63.10 and currently holds a direct ownership stake of 639,548 shares. In a recent proxy filing, Comcast said Roberts held some 5.74 million class A shares, 8.16 million shares of special class A stock, as well as 9.44 million class B shares (he is the 100% holder of the class B stock). Comcast Corporation (NASDAQ:CMCSA) has seen another insider sell stock recently, but we are not discussing this insider sale, as it was conducted under a trading plan. The shares of the media and technology company are up by almost 8% year-to-date and seem to be fairly priced at the moment, considering their trailing P/E of 19.63. Just recently, Pacific Crest Securities lowered their price target on the stock to $65 from $67, while maintaining an ‘Overweight’ rating on it. Jacob Rothschild’s RIT Capital Partners acquired a 1.04 million-share stake in Comcast Corporation (NASDAQ:CMCSA) during the second quarter.

Correction: This article was corrected to reflect the accurate information related to the total holding of Brian Roberts in Comcast Corporation. 

Disclosure: None