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Investing

Insider Selling Picks Up as Market Volatility Jumps

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By Lee Jackson Published
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While very few people are great at timing the market, many insiders looking to sell company stock simply have an established 10b 5-1plan in place that sells shares on a regular basis. Not only does this limit them from liability, it also helps them liquidate larger company positions over time to lower the tax burden. As the market hits new highs, insiders with plans that happened to be selling this past week were well served.

We cover the insider selling at major companies every week at 24/7 Wall Street. We always like to caution our readers that insider selling doesn’t necessarily mean that anything is wrong at the company. Many executives are overweighted to their own company’s stock and sell to diversify or for other reasons.

Here is this past week’s notable insider selling.

Receptos Inc. (NASDAQ: RCPT) is a biopharmaceutical company developing therapeutic candidates for the treatment of immune and metabolic diseases. Two company directors did some big selling this week, as one sold 300,000 shares at prices that ranged from $62.55 up to $63.67, for a total of $18.8 million. A second director later in the week sold 100,000 shares at prices that ranged from $61.07 to $63.08, for a total of $6.1 million. Shares were trading Friday at $63.74, up more than 3%.

ALSO READ: Insider Buying Consistent This Week, Despite Volatile Market

UnitedHealth Group Inc. (NYSE: UNH) also had a director doing some large insider selling He parted with 100,000 shares of the stock at $87.03. The stock has done well this year, up more than 20%. Shares of the giant health care company were trading on Friday at $86.07.

VirnetX Holding Corp. (NYSEMKT: VHC) is a very small market cap Internet security software and technology company with patented technology for secure communications including 4G LTE security. Its CEO decided to do some serious selling as he shed 1.75 million shares of the stock at $4.46. The total sale amount came to $7.8 million. This CEO may have left a little on the table as shares were trading Friday at $6.54, up almost 20%.

Cisco Systems Inc. (NASDAQ: CSCO) is a large cap technology leader that had some insider selling this week. An executive vice president sold 83,100 shares of network behemoth at $25.11, for a total sale of $2.1 million. Cisco shares were trading on Friday at $24.85.

Select Medical Holdings Corp. (NYSE: SEM) operates specialty hospitals and outpatient rehabilitation clinics in the United States. A director at the company sold 300,052 shares of stock at prices ranging from $12.89 to $13.04. The stock was trading on Friday just below those levels at $12.44.

ALSO READ: The Worst Performing DJIA Stocks of 2014

Other companies that saw some insider selling this week includ: Panhandle Oil and Gas,Inc. (NYSE: PHX) and Green Plains Inc. (NASDAQ: GPRE).

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About the Author Lee Jackson →

Lee Jackson has covered Wall Street analysts' equity and debt research and equity strategy daily for 24/7 Wall St. since 2012. His broad and diverse career, which included a stint as the creative services director at the NBC affiliate in Austin, Texas, gives him unique insight into the financial industry and world.

Lee Jackson's journey in the financial industry spans over 30 years, with nearly two decades as an institutional equity salesperson at Bear Stearns, Lehman Brothers, and Morgan Stanley. His career was marked by his presence on the sell side during pivotal Wall Street events, from the dot.com rise and bubble to the Long Term Capital Management debacle, 9/11, and the Great Recession of 2008. This is a testament to his resilience and adaptability in the face of market volatility.

Lee Jackson’s practical financial industry experience, acquired from a career at some of the biggest banks and brokerage firms, is complemented by a lifetime of writing on various platforms. This unique combination allows him to shed light on the intricacies and workings of Wall Street in a way that only someone with deep insider experience and knowledge can. Moreover, his extensive network across Wall Street continues to provide direct access for him and 24/7 Wall St., a privilege few firms enjoy.

Since 2012, Jackson’s work for 24/7 Wall St. has been featured in Barron’s, Yahoo Finance, MarketWatch, Business Insider, TradingView, Real Money, The Street, Seeking Alpha, Benzinga, and other media outlets. He attended the prestigious Cranbrook Schools in Bloomfield Hills, Michigan, and has a degree in broadcasting from the Specs Howard School of Media Arts.

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