May 24, 2016

Posted by in Stock Reports | 0 Comments

Insider Selling at Three Companies: Wayfair Inc (NYSE:W), salesforce.com, inc. (NYSE:CRM), Murphy Oil Corporation (NYSE:MUR)

Insider Selling at Three Companies: Wayfair Inc (NYSE:W), salesforce.com, inc. (NYSE:CRM), Murphy Oil Corporation (NYSE:MUR)

Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. In various countries, trading based on insider information is illegal. This is because it is seen as unfair to other investors who do not have access to the information as the investor with insider information could potentially make far larger profits that a typical investor could not make.

The authors of one study claim that illegal insider trading raises the cost of capital for securities issuers, thus decreasing overall economic growth. However, some economists have argued that insider trading should be allowed and could, in fact, benefit markets.

Trading by specific insiders, such as employees, is commonly permitted as long as it does not rely on material information not in the public domain. However, most jurisdictions require such trading be reported so that these can be monitored. In the United States and several other jurisdictions, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade.

Wayfair Inc (NYSE:W) saw an insider sell on May 20, 2016 that may make shareholders worried. HARBOURVEST PARTNERS 2007 DIRE, sold 48,100 shares at $40.49 a piece. The total sale came to $1,947,420, leaving the total count to 32,460 shares. Its shares currently owned by company management are 3.10%. The 6-month change recorded in total insider ownership was -46.27%. On the other side, -0.26% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Benioff Marc, a Chairman of the Board & CEO at salesforce.com, inc. (NYSE:CRM) sold 12,500 shares at $81.30 per share to trim the total holding at 35,412,500 shares. Its shares currently owned by company management are 0.10% while institutional investors own about 87.90%. The 6-month change recorded in total insider ownership was -75.16%. On the other side, 1.35% change in total institutional ownership has been reported for the 3-month period.

Murphy Oil Corporation (NYSE:MUR) also received some insider trading action as GARDNER JOHN B, who the company’s Vice President & Treasurer is sold some 1,246 shares at a price of $29.39 per share. Its shares currently owned by company management are 1.50% while institutional investors own about 97.70%. The 6-month change recorded in total insider ownership was -1.03%. On the other side, 1.02% change in total institutional ownership has been reported for the 3-month period.

 

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