Insider selling is one of the hottest topics for investors. After all, if insiders are selling shares, investors feel as though they can expect to see declines in the future; prompting them to sell some of their own. Today, we'll talk about the massive amounts of shares that the founders of Google have been offloading their shares, why this is one of those unique cases where it's not a big concern, and how binary options traders can make profit by trading Google trends. So, let's get right to it…
Details Of Insider Selling At Google
Google's founders, Larry Page and Sergey Brin, have both been unloading massive amounts of GOOG shares. As a matter of fact, between the two, 266,664 shares have been sold since June 15th; equating to $144.9 million in value. However, we've only seen the tip of the ice burg. As a matter of fact, the massive selling we've seen since June 15th is part of a major sales plan for which a 10b was filed earlier this year. Under that plan, Larry Page and Sergey Brin will have no control of when the trades are made, but will unload a total of about $4.4 billion in stock over the next two years. As a result, Page and Brin will be giving up a big portion of their company, but will still hold the decision making power with regard to the company and its growth.
Why Investors Shouldn't Be Concerned
While insider selling is generally a major reason for concern, when it comes to Google, I don't think investors should worry too much. There are a couple of reasons this shouldn't be a major concern…
Page & Brin Still Have Massive Stake In The Company – First and foremost, Larry Page and Sergey Brin made sure that they would still hold enough shares to control Google's movements moving forward. Under their management, the company has gone from infant to giant and isn't likely to start reversing any time soon.
This Isn't Uncommon Among Large Companies – Founders of large companies should at some point be compensated for all of the effort they put into creating their empires; and it's not uncommon that they use shares as a way to do so. As a matter of fact, years ago we watched as Bill Gates started to divest from Microsoft. While Microsoft continued to grow, Gates was able to reward himself for the hard work he's put in. The move at Google is the same type of move. In this case, the insiders are rewarding themselves for a job well done, not divesting out of fear of declines.
How Binary Options Traders Can Benefit From The News
Regardless of the reasoning behind the insider sales, when investors pick up on the fact that the founders of Google are offloading $4.4 billion worth of GOOG shares, we're likely to see declines. So, in the short term, look for a sell off that opens the opportunity for profitable put options. However, in the long run, I think we're still going to see solid growth. So after about a week or two, start looking for support as GOOG is likely to continue climbing; leading profitable call option opportunities.
What Do You Think?
Where do you think GOOG is headed and why? Let us know in the comments below.