Jun 23, 2016

Posted by in Stock Reports | 0 Comments

Insider Sells Are Telling Something: Gigamon Inc (NYSE:GIMO), Smith & Wesson Holding Corp (NASDAQ:SWHC), Celgene Corporation (NASDAQ:CELG)

Insider Sells Are Telling Something: Gigamon Inc (NYSE:GIMO), Smith & Wesson Holding Corp (NASDAQ:SWHC), Celgene Corporation (NASDAQ:CELG)

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.

Gigamon Inc (NYSE:GIMO) saw an insider sell on June 20, 2016 that may make shareholders worried. BURNS MIKE, Executive Vice President, sold 8,272 shares at $37.00 a piece. The total sale came to $306,064, leaving the total count to 81,512 shares. Its shares currently owned by company management are 2.00% while institutional investors own about 79.70%. The 6-month change recorded in total insider ownership was -34.54%. On the other side, 7.21% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved Smith Mark Peter, a See remarks. at Smith & Wesson Holding Corp (NASDAQ:SWHC) sold 3,645 shares at $23.85 per share to trim the total holding at 32,287 shares. Its shares currently owned by company management are 1.80% while institutional investors own about 73.20%. The 6-month change recorded in total insider ownership was -47.71%. On the other side, 2.89% change in total institutional ownership has been reported for the 3-month period.

Celgene Corporation (NASDAQ:CELG) also received some insider trading action as HUGIN ROBERT J, who the company’s see remarks is sold some 75,000 shares at a price of $100.16 per share to the holding that now comprises of 1,122,201 shares. Its shares currently owned by company management are 0.20% while institutional investors own about 80.40%. The 6-month change recorded in total insider ownership was -6.60%. On the other side, -2.40% change in total institutional ownership has been reported for the 3-month period.

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