As we have reminded our readers lately, once the earnings season starts up, many corporations shut windows for insiders and 10% stock owners and prohibit them from buying or selling stock. The reason for this is very simple. Publicly traded corporations do not want the slightest bit of impropriety to be possible when the company is announcing earnings and giving forward guidance. And with windows closing for second-quarter results, insider trading is slowing down.
We cover insider selling every week at 24/7 Wall St., and we like to always remind our readers that just because an individual or 10% institutional owner is selling stock, that is no cause for immediate alarm. Many top executives, and even directors, are compensated with stock and often sell just to diversify or purchase other assets. Also, many 10% owners may have been in the stocks since very early stages of the company and could be finally getting a return of their investment and capital.
Here are the companies that reported insider selling this past week.
Calavo Growers Inc. (NASDAQ: CVGW) hits our screens for the second time in less than a month. The CEO at the company decided to sell shares twice this week, parting with 35,513 shares at $52.05 apiece, for a sale came to $1.8 million. He also sold 65,656 shares at $52.47, netting him $3.4 million. Calavo Growers markets and distributes avocados and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores and restaurants worldwide. The stock was trading on Friday’s close at $52.05 per share.
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Acuity Brands Inc. (NYSE: AYI) had a director at the company shedding stock this past week. The director sold 1,934 shares at a price of a lofty $188.90 per share. The total for the sale came to $365,000. Acuity Brands designs, produces and distributes lighting solutions, components and services for commercial, institutional, industrial, infrastructure and residential applications in North America and internationally. The shares closed trading on Friday at $191.43.
DSW Inc. (NYSE: DSW) is a top specialty retailer, and the chief operating officer of the company decided to sell stock this week. Carrie McDermott sold a total of 8,798 shares of the company stock at a price of $35. The total for the trade came to $308,000. The company offers dress, casual and athletic footwear and accessories under various brands for women, men and kids. DSW accessories include handbags, hosiery and jewelry. The stock ended the week at $34.82.
TG Therapeutics Inc. (NASDAQ: TGTX) had a director of the company selling this week. The director surrendered 17,000 shares of the stock at $17.08 per share. The total for the sale came to about $290,000. TG Therapeutics is a biopharmaceutical company that focuses on the acquisition, development and commercialization of novel treatments for B-cell malignancies and autoimmune diseases. The stock closed trading on Friday at $18.21.
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One thing is for sure, about a month from now we can expect to see sellers and perhaps buyers back in full force. After the first-quarter earnings reports wrapped up back in the spring, we saw some tremendous buying and selling We expect that to be the case after this quarter’s reports conclude as well.
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