3 Companies With Noteworthy Insider Selling Activity

Moving on to the next company examined in this article, RingCentral Inc. (NYSE:RNG) has witnessed strong insider selling activity in the past few weeks. Senior Vice President of Strategy Praful Shah discarded exactly 50,000 shares last week at prices between $22.41 and $22.94 per share, 10,000 shares of which were held by a trust fund for the benefit of the executive’s children. After the recent transactions, the executive holds a direct ownership stake of 350,595 shares, while the aforementioned trust fund currently owns 25,239 shares. There were other executives who sold shares last week, but they only cashed out freshly-exercised stock options, which we do not report on.

The provider of software-as-a-service solutions for business communications has experienced significant growth over the past several years, as the company registered total revenue of $114.5 million in 2012, $160.5 million in 2013, and $219.9 million in 2014. RingCentral mainly generates revenue by selling subscriptions to five product offerings, and the company has poured substantial cash into its research and development activities and operations, so as to grow its customer base and innovate new offerings. Meanwhile, the stock is nearly 52% in the green year-to-date and is trading at an all-time high of nearly $23, which could indicate why the insider has chosen to sell shares. The number of hedge funds with stakes in the company climbed to 29 from 22 during the third quarter, while Bain Capital’s Brookside Capital was the top shareholder of RingCentral Inc. (NYSE:RNG) within our database on September 30, holding 2.32 million shares.

Lastly, RSP Permian Inc. (NYSE:RSPP) also registered heavy insider selling activity last week. Erik B. Daugbjerg, who serves as Vice President of Business Development and Oil and Gas Marketing, sold a 20,000-share block on Thursday at a sale price of $28.83 per share, trimming his stake to 195,603 shares. The independent oil and natural gas company has seen its shares gain nearly 15% in 2015. Just recently, RSP Permian announced the completion of its previously-announced acquisition of underdeveloped acreage and oil and gas producing properties in the Midland Basin for roughly $137 million. In the meantime, its average daily production rate in the third quarter was 24,000 barrels of oil equivalent per day, up by 114% from the average daily production registered in the same period of last year. The company has been successfully hedging the risks associates with the volatility in commodity prices, mainly through collars, swaps and puts. This has surely assisted the company in tackling the low-oil-price environment.

20 smart money investors monitored by our team owned stakes in the company on September 30, amassing 11.20% of its outstanding common stock. John Labanowski’s Brenham Capital Management owns exactly 3.00 million shares of RSP Permian Inc. (NYSE:RSPP) as of the end of September.

Disclosure: None