Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Applied Materials Inc. (AMAT), Cisco Systems Inc. (CSCO), and Emcor Group Inc. (EME) See Executives and Board Members Unload Shares

Investors closely monitoring insider trading activity on a daily basis have surely noticed that Facebook Inc. (NASDAQ:FB) and The Coca-Cola Co (NYSE:KO) have dominated the insider selling activity of the past several trading sessions. But why doesn’t Insider Monkey cover that seemingly noteworthy insider selling activity?

Insider Monkey readers most probably know that our team ignores all kinds of insider trading activity related to pre-arranged trading plans, usually referred to as 10b5-1 plans, or activity associated with freshly-exercised stock options. Investors are well aware that corporate insiders sell shares for a wide variety of reasons unrelated to their companies’ current market conditions or future prospects, so Insider Monkey attempts to keep tabs on the informative kind of insider selling only by focusing on spur-of-the-moment transactions. Are those insider sales conducted under pre-arranged trading plans put in place months ago relevant to current market conditions? Highly unlikely. Even spontaneous insider sales unrelated to stock options may not convey any information, as insiders may simply sell shares for liquidity needs, so Insider Monkey tries to minimize the risk of stumbling upon erroneous-signaling insider selling. That said, the following article will discuss the recent insider selling registered at three publicly traded companies.

Through extensive research, we have determined that the due diligence that the investors in our database employ, as well as their long-term focus makes them perfect targets to emulate. However, the results of our analysis have also shown that the small-cap picks of these funds can generate much better returns, with the 15 most popular small-cap stocks beating the market by an average of 95 basis points per month (read more details here).

cisco, valley, silicon, logo, network, switch, tech, provider, business, sign, symbol, infrastructure, hub, technology, computer, equipment, computing, bone, electronic,

Ken Wolter /

Networking Giant Cisco Registers Increased Insider Selling

The insider selling activity at Cisco Systems Inc. (NASDAQ:CSCO) has been intense in recent months, so let’s take a look at the most recent activity. Pankaj Patel, the company’s Chief Development Officer and Executive Vice President, offloaded 35,445 shares on Monday and 14,942 shares on Tuesday at a weighted average price of $28.98 per share. A total of 20,760 shares of the freshly-sold securities were held in a trust fund called Trust #1 that continues to hold 144,165 shares, while 22,956 shares were held in another trust named Trust #3 that currently owns a mere 5,412 shares. The remaining 5,671 shares were owned directly. After the recent sales, Mr. Patel, who is leaving the company in the second half of the year after spending 19 years at Cisco, currently holds a direct ownership stake of 357,636 shares.

Just recently, analysts at Goldman Sachs downgraded the networking giant to “Neutral” from “Buy”, saying that the company is “running out of levers to drive meaningful upside”. The investment bank’s price target on Cisco Systems Inc. (NASDAQ:CSCO) was cut to $32 from $35, which reflected slowing server share gains and operating margins near 10-year highs. Moreover, the stock’s multiple expansion is anticipated to be weighted by increasing competition from Hewlett Packard Enterprise Co (NYSE:HPE)’s Aruba networking products, as well as recent departures of key executives such as the one of Mr. Patel. Cisco shares are up 5% year-to-date. Donald Yacktman’s Yacktman Asset Management was the owner of 29.33 million shares of Cisco Systems Inc. (NASDAQ:CSCO) at the end of March.

Follow Cisco Systems Inc. (NASDAQ:CSCO)
Trade (NASDAQ:CSCO) Now!

The second page of this article will discuss the recent insider selling recorded at two other companies.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.