Insider selling is a big topic when it comes to investing and trading. The reality is that members of the company or firms that work close to a company start to sell shares, it could be a sign of bad news to come for the stock. As a binary options trader, I like to track insider selling as a way to find opportunities in the market. Essentially, when I see big insider sales, I start to look for downtrends that I can capitalize on by purchasing put options; and believe it or not, you can do the same! Here are a few big tech companies that have seen recent insider sales and could see declines soon…
Google CFO And Senior VP
Google's CFO and Senior Vice President is Patrick Pichette; and Mr. Pichette recently made a big sale of Google shares. The insider recently sold 1,220 shares on May 6th. The shares were sold in two separate transactions with a total value of $655,402. After the sale, Mr. Pichette is left with 331 shares valued at $178,151. This is a very interesting sale because while insiders sell stocks all the time, it's not common that an insider sells more than half of their holdings of the company they are part of. After this sale, Mr. Pichette only has around 25% of the total shares he had in the company left.
Salesforce CEO And Chairman Of The Board
When it comes to the Salesforce selling, the news is pretty big for two reasons. First off, the person who sold the shares was Marc Russell Benioff; the companies CEO and chairman of the board. The other big piece of the news is the amount of shares sold. Mr. Benioff sold 37,500 shares! That's a total value of $2,756,422. The sale of the shares happened through seven different transactions; happening between May 6th and May 8th. Following the sale, Mr. Benioff still owns 37,662,500 shares with a total value of 2,726,765,000.
Twitter Senior Vice President Of Engineering
When it comes to Twitter insider sales, it's all eyes on the company's Senior Vice President of Engineering, Alexander Roetter. On May 6th, Alexander Roetter sold 6,813 shares of Twitter with a total value of $253,673. In this particular case, the total amount of shares sold is a drop in the bucket compared to the total amount of shares Mr. Roetter owns; 0.69% to be exact. Nonetheless, it is a rather large sale; and because of the size, it's definitely worth watching the stock. After the sale, Mr. Roetter now has 981,696 Twitter shares; with a total value of $36,901,953.
What To Do With This Information
Knowing that insiders of big companies have made big sales of their stocks recently, it's time to start looking for declines in the values of these companies stocks. More importantly, we may want to start looking at the NASDAQ more closely for market-wide declines. The reality is that a big chunk of the insider selling we've been seeing recently has been insider selling at major tech firms; most of which are listed on the tech-heavy NASDAQ. So, keep your eyes peeled in the tech market as a whole; looking for declines that give you the opportunity to profit from put options!
What Do You Think?
Do you think insider selling in major tech companies could be a sign of market wide declines to come? Why or why not? Let us know in the comments below!