Jun 9, 2016

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Insider Sells Are Telling Something: Gilead Sciences, Inc. (NASDAQ:GILD), Michaels Companies Inc (NASDAQ:MIK), Flextronics International Ltd. (NASDAQ:FLEX)

Insider Sells Are Telling Something: Gilead Sciences, Inc. (NASDAQ:GILD), Michaels Companies Inc (NASDAQ:MIK), Flextronics International Ltd. (NASDAQ:FLEX)

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.

Gilead Sciences, Inc. (NASDAQ:GILD) saw an insider sell on June 06, 2016 that may make shareholders worried. MILLIGAN JOHN F, President and CEO, sold 112,000 shares at $86.94 a piece. The total sale came to $9,736,779, leaving the total count to 1,058,963 shares. Its shares currently owned by company management are 0.50% while institutional investors own about 81.90%. The 6-month change recorded in total insider ownership was -16.79%. On the other side, -5.97% change in total institutional ownership has been reported for the 3-month period.

Moving on to the second insider trade which involved RUBIN CARL, a Chairman & CEO at Michaels Companies Inc (NASDAQ:MIK) sold 150,000 shares at $30.29 per share to trim the total holding at 305,076 shares. Its shares currently owned by company management are 0.40% while institutional investors own about 99.30%. The 6-month change recorded in total insider ownership was -98.38%. On the other side, -3.37% change in total institutional ownership has been reported for the 3-month period.

Flextronics International Ltd. (NASDAQ:FLEX) also received some insider trading action as MCNAMARA MICHAEL M, who the company’s Chief Executive Officer is sold some 217,125 shares at a price of $12.84 per share to the holding that now comprises of 2,926,216 shares. Its shares currently owned by company management are 0.60% while institutional investors own about 99.40%. The 6-month change recorded in total insider ownership was -44.71%. On the other side, -1.64% change in total institutional ownership has been reported for the 3-month period.

 

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