The Big Sale: Insiders Sell Company Stock in Millions of Dollars

6 officers reduce their positions as their companies experience certain warning signs

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May 25, 2016
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During the past week, six insiders have sold their companies' shares valuing more than $1 million. Due to similar warning signs, the insiders decided to reduce their positions in the companies' stocks.

One CEO, Joseph L. Jackson of WageWorks Inc. (WAGE, Financial), sold 96,801 shares May 24 at a price of $55.53, which totaled $5,335,378. Jackson reduced his position in WageWorks as the company had declining per-share values during the past five years. Additionally, the company’s stock price and P/S ratio is near the one-year high.

Likewise, Todd M. Cleveland, CEO of Patrick Industries Inc. (PATK, Financial), sold 55,000 shares May 24 at a price of $51.97 as his company’s stock price, P/B and P/S ratios approached 10-year highs. The transaction amount totaled $2,858,350.

EVP and Chief Financial Officer of Torchmark Corp. (TMK, Financial) Frank M. Svoboda sold 25,000 shares May 23 at a price of $59.22 for several likely reasons, including declining per-share revenues, near five-year low dividend yields and near 10-year high P/E and P/S ratios. The total transaction cost was $1,480,500.

High P/E and P/S ratios are not the only reasons why these insiders reduced their positions in their companies. Kenneth Desgarennes, chief financial officer of Zayo Group Holdings Inc. (ZAYO, Financial), sold 62,500 shares May 23 at a price of $27.53 as his company experienced operating losses in the previous three years while issuing $1.3 billion in long-term debt. Desgarennes’ total transaction cost was $1,720,625.

As the company experienced declining gross margins, Cirrus Logic (CRUS, Financial) President and CEO Jason P. Rhode sold 50,000 shares May 23 at a price of $34.41, totaling $1,720,500.

Chief Financial Officer Michael P. Monahan of Nutrisystem Inc. (NTRI, Financial) sold 52,773 shares May 24 at a price of $27.01 as the company had decreasing per share revenues and high payout ratios. The total transaction cost was $1,425,399.

For more CEO buys and sells, consult CEO Buys and CFO Buys.

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