The latest data from GuruFocus shows that EVP & Chief Cust & Prtnr Offcr Jeffery Sharritts sold 637 shares of Cisco Systems Inc (CSCO) on 2022-12-13.
Investors may be concerned when an insider sells shares. It could be a sign that insiders are turning bearish on the stock of their own company. Insiders have a unique advantage in determining the value of their company, so when they begin selling, investors pay attention. Let’s take a look at this insider sell to see if Cisco Systems Inc deserves some skepticism from investors.
Jeffery Sharritts’s trades
Over the past year, Jeffery Sharritts has sold 28942 shares in total.
This means that Jeffery Sharritts has been selling their company’s stock over a longer term. This could actually be a positive sign for the stock, contrary to expectations. When insiders sell frequently, it could be because their company issues a lot of stock options to pay executives. The executives will then sell some of the new shares for cash. Of course, it is also possible that the selling was due to insiders becoming more bearish on the stock. Investors should be cautious when evaluating insider selling.
Even if one insider is selling, that doesn’t mean that other insiders are bearish on the stock. Are other insiders selling the stock as well, or have the company’s top executives and owners been doing more buying recently?
The insider transaction history for Cisco Systems Inc shows than there have been 0 insiders buys in total over the past year. Meanwhile, there have been 25 insider sells over the same timeframe.
Jeffery Sharritts is not the only insider that has been selling shares recently; other company insiders are doing more selling than buying as well, which could be worrying for investors. However, we should keep in mind that insiders sell for many reasons, such as needing the cash or taking advantage of the company’s stock buyback plans. High insider selling could be a bad sign or a neutral sign, depending on the reasoning behind the sales.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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- CEO Buys, CFO Buys: Stocks that are bought by their CEO/CFOs.
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