Insider alert: an insider comes
The latest data from GuruFocus shows that Managing Director EVP Dexcom V Steven Pacelli sold 1000 shares of DexCom Inc (DXCM) on 2022-07-25.
Investors may be concerned when an insider sells shares. This could be a sign that insiders are turning bearish on their own company’s stock. Insiders have a unique advantage in determining the value of their business, so when they start selling, investors pay attention. Let’s take a look at this insider sell to see if DexCom Inc deserves some skepticism from investors.
The professions of Steven Pacelli
Over the past year, Steven Pacelli has sold 13,084 shares in total.
This means that Steven Pacelli has sold the shares of their longer-term company. This could actually be a positive sign for the stock, contrary to expectations. When insiders sell frequently, it may be because their company issues a lot of stock options to compensate executives. The leaders will then sell some of the new shares for cash. Of course, it’s also possible that the selloff was due to insiders becoming more bearish on the stock. Investors should be careful when evaluating insider selling.
Even if an insider sells, it does not mean that other insiders are bearish on the stock. Are other insiders also selling the shares, or have the company’s top executives and owners bought more recently?
The insider trading history for DexCom Inc shows that there were 0 total insider buying in the past year. Meanwhile, there were 56 insider sales during the same period.
Steven Pacelli isn’t the only insider to sell stocks recently; other company insiders are also selling more than they are buying, which could worry investors. However, we should keep in mind that insiders sell for many reasons, such as needing cash or taking advantage of company stock buyback plans. High insider selling can be a bad sign or a neutral sign, depending on the reasoning behind the selling.
Please note that figures and facts quoted are at the time of writing this article and may not reflect the latest business data or company announcements.
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