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: SMART Global Holdings, Inc. (NASDAQ: SGH) Director Mukesh Patel disposed a total of 96959 shares at an average price of 52.16. The insider received $5,057,762.30 as a result of the transaction.
What’s Happening: SMART Global, last week, reported better-than-expected Q4 EPS and sales results.
What SMART Global Does: SMART Global Holdings Inc is a designer and manufacturer of electronic products focused on memory and computing technology areas.
What’s Happening: Alphabet recently took legal action against videogame producer Epic Games over code in its "Fortnite" video game, which Google said breached its Android app store Google Play Store, after Apple successfully took similar action.
What Alphabet Does: Alphabet is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads.
Noodles & Company
The Trade: Noodles & Company (NASDAQ: NDLS) 10% owner Mill Road Capital Ii Lp, Mill Road Capital Ii GP Llc, Thomas Lynch sold a total of 50909 shares at an average price of $13.13. The insider received $668,273.95 as a result of the transaction.
What’s Happening: Stephens & Co, earlier during the month, initiated coverage on the stock with an Overweight rating and announced an $18 price target.
What Noodles & Company Does: Noodles & Co is a restaurant concept offering lunch and dinner within the fast-casual segment of the restaurant industry. The company's menu includes a variety of cooked-to-order dishes, including noodles and pasta, soups, salads and appetizers.
What’s Happening: The company, during August, reported upbeat quarterly earnings.
What Fox Factory Does: Fox Factory Holding Corp is a designer, manufacturer, and marketer of performance-defining products and systems used primarily on bikes, Side-by-Sides, on-road vehicles with and without off-road capabilities, off-road vehicles and trucks, ATVs, snowmobiles, specialty vehicles and applications, motorcycles, and commercial trucks.
The Trade: Qualys, Inc. (NASDAQ: QLYS) 10% owner Philippe Courtot Family Trust sold a total of 45120 shares at an average price of $115.13. The insider received $5,194,647.66 from selling those shares.
What’s Happening: Qualys, in August, reported better-than-expected Q2 results and raised FY21 guidance above estimates..
What Qualys Does: Qualys is a provider of cloud-based security and compliance solutions to enterprises, government entities, and small- and medium-sized businesses.
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