Jun 13, 2016

Posted by in Stock Reports | 0 Comments

Insider Sells Are Telling Something: Facebook Inc (NASDAQ:FB), Groupon Inc (NASDAQ:GRPN), T-Mobile US Inc (NASDAQ:TMUS)

Insider Sells Are Telling Something: Facebook Inc (NASDAQ:FB), Groupon Inc (NASDAQ:GRPN), T-Mobile US Inc (NASDAQ:TMUS)

As a general rule, insider buying shows management’s confidence in the company, and is considered a bullish sign—in other words a sign that stock prices are likely to go up. Conversely, insider selling is considered bearish—those in the know may be off loading their stocks in an expectation that prices will soon fall. So it pays to keep an eye on the activities of insiders.

Studies have shown that prompt and timely dissemination of insider transactions are profitable for investors, as insiders tend to beat the market. The odds in favor of an insider purchase being followed by further purchases are three times greater than the odds of a purchase followed by a sale.

Facebook Inc (NASDAQ:FB) saw an insider sell on June 08, 2016 that may make shareholders worried. Sandberg Sheryl, Chief Operating Officer, sold 109,000 shares at $118.18 a piece. The total sale came to $12,881,437, leaving the total count to 4,757,440 shares. Its shares currently owned by company management are 0.30% while institutional investors own about 71.40%. The 6-month change recorded in total insider ownership was -70.36%. On the other side, -2.24% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved BARRIS PETER J, a Director at Groupon Inc (NASDAQ:GRPN) sold 358,382 shares at $3.20 per share to trim the total holding at 1,145,353 shares. Its shares currently owned by company management are 0.60% while institutional investors own about 51.90%. The 6-month change recorded in total insider ownership was -15.45%. On the other side, -10.75% change in total institutional ownership has been reported for the 3-month period.

T-Mobile US Inc (NASDAQ:TMUS) also received some insider trading action as Ray Neville R, who the company’s EVP & Chief Technology Officer is sold some 6,945 shares at a price of $44.00 per share to the holding that now comprises of 210,042 shares. Its shares currently owned by company management are 0.40% while institutional investors own about 34.80%. The 6-month change recorded in total insider ownership was -6.37%. On the other side, -1.41% change in total institutional ownership has been reported for the 3-month period.

 

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