When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out Benzinga’s insider transactions platform.
- The Trade: LMP Automotive Holdings, Inc. (NASDAQ: LMPX) President and CEO Samer Tawfik disposed a total of 9000 shares at an average price of $7.14. The insider received $64,260.00 as a result of the transaction.
- What’s Happening: The company, in November, said it swung to a profit in the third quarter.
- What LMP Automotive Does: LMP Automotive Holdings Inc is an e-commerce and facilities-based retail platform for consumers who desire to buy, sell, rent, subscribe for or finance pre-owned and new automobiles. Its business model is described as Buy, Rent or Subscribe, Sell and Repeat.
- The Trade: Commercial Metals Company (NYSE: CMC) Chairman, President and CEO Barbara Smith sold a total of 582207 shares at an average price of $36.82. The insider received $371,818.14 from selling those shares.
- What’s Happening: JP Morgan, last month, upgraded Commercial Metals from Neutral to Overweight.
- What Commercial Metals Does: Commercial Metals operates steel mills, steel fabrication plants, and metal recycling facilities in the United States and Poland.
- The Trade: Visa Inc. (NYSE: V) Chairman and CEO Alfred Kelly Jr sold a total of 9000 shares at an average price of $216.81. The insider received $1,951,290.00 as a result of the transaction. The insider also bought a total of 6000 shares.
- What’s Happening: Visa, last month, launched a new crypto advisory practice to help its partners “navigate a new era of money movement.”
- What Visa Does: Visa is the largest payment processor in the world. In fiscal 2021, it processed over $10 trillion in purchase transactions. Visa operates in over 200 countries and processes transactions in over 160 currencies. Its systems are capable of processing over 65,000 transactions per second.
- The Trade: The ODP Corporation (NASDAQ: ODP) CEO Gerry Smith sold a total of 11576 shares at an average price of $40.02. The insider received $463,317.82 from selling those shares.
- What’s Happening: The ODP Corp recently announced the sale of its CompuCom subsidiary and increased its stock buyback authorization.
- What ODP Corporation Does: The ODP Corp is a provider of business services, products, and digital workplace technology solutions to small, medium, and enterprise businesses.
American Eagle Outfitters
- The Trade: American Eagle Outfitters, Inc. (NYSE: AEO) EVP, Chief Operations Officer Michael Rempell sold a total of 64011 shares at an average price of $25.43. The insider received $1,627,799.73 from selling those shares.
- What’s Happening: The company’s stock dropped over 31% over the previous six months.
- What American Eagle Outfitters Does: American Eagle Outfitters Inc is an apparel and accessory retailer with company stores throughout North America, China, Hong Kong, and the United Kingdom.
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