Insiders Join the Selling Party as Markets Post Steep Drop

We cover insider selling each week here at 24/7 Wall St., and we like to point out that insider selling does not always signify corporate trouble. Many top executives are compensated via stock or company stock options. They often sell stock to do everything from diversify portfolios to pay taxes, or to buy other assets like real estate.

Here are the companies that reported insider selling this past week:

Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) is one stock that did see a massive inside sell this week. A director of the company and a 10% holder Orbimed Advisors sold a total of 205,000 shares at prices that ranged from $272 to $275.18. The total came to a gigantic $56.26 million. Shares of this biotech stock were trading at $293.91 of Friday’s close, so some significant cash was left on the table.

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TJX Companies Inc. (NYSE: TJX) saw the big boss sell some shares of the stock this week. The CEO of the discount clothing stores sold a total of 65,000 shares at prices that ranged from $70.08 to $70.18. The total of the sale came to a very tidy $4.56 million. The stock has had a magnificent run over the past couple of years, so taking some chips off the table here makes sense. Shares closed trading Friday at $69.59, so a well-timed sale as well.

Diamondback Energy Inc. (NASDAQ: FANG) saw Wexford Capital continue to sell shares of the stock, an additional 243,000 shares last week at $71.93 apiece. The total sale came to $17.45 million. Wexford has been selling stock for some time, but it appears to have been price sensitive and did not unload at the bottom back in December. Some serious money was left on the table this time around as the stock ended the week at $75.17.

Ross Stores Inc. (NASDAQ: ROST) is another high-profile discount store that saw selling at the C suite level this week. The chief operating officer and an executive vice president of the company sold a total of $85,000 shares at prices that stretched from $106.99 to $107.53. Like TJX, Ross Stores has had a spectacular run, and this sale should not be a surprise. The stock ended trading on Friday at $104.13, so very timely.

Analog Devices Inc. (NASDAQ: ADI) is a top chip company that saw a director sell a 50,000 share block this past week. The sale prices ranged from $60.50 to $60.95 a share. The total of the sale came to $3.03 million. The stock closed trading on Friday at $58.84, so another well-timed execution.

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These companies also reported insider selling last week: Burlington Stores Inc. (NASDAQ: BURL), Esperion Therapeutics Inc. (NASDAQ: ESPR), Evestnet Inc. (NYSE: ENV), Memorial Resource Development Corp. (NASDAQ: MRD) and Valero Energy Corp. (NYSE: VLO).

All in all, the selling is consistent with what we have seen, and there was no sense of panic or forced selling. As we edge toward the second quarter earnings season, it will be interesting to see if this pattern stays in place