This Insider Just Sold Stock
The latest data from GuruFocus shows CEO and Director John Carrington sold 57,140 shares of Stem Inc (STEM) on 2022-07-21.
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 Stem Inc deserves some skepticism from investors.
The trades of John Carrington
Over the past year, John Carrington has sold 314,735 shares in total.
This means that John Carrington has sold the shares of his 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 Stem Inc shows that there were 0 total insider buying in the past year. Meanwhile, there were 32 insider selling during the same period.
John Carrington isn’t the only insider to sell shares 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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This article is general in nature and does not represent the views of GuruFocus or any of its affiliates. This article is not intended to be financial advice, nor does it constitute investment advice or recommendation. It has been written without taking into account your personal situation or financial objectives. Our goal is to bring you data-driven fundamental analysis. The information on this site is in no way guaranteed to be complete, accurate or in any other way.
- CEO Buys, CFO Buys: Stocks bought by their CEO/CFO.
- Insider Cluster Purchases: Shares purchased by several officers and directors of the company.
- Double Buys :: Companies that gurus and insiders are buying
- Triple Buys: Companies that gurus and insiders buy, and the company buys out.
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