Insiders are selling off stocks.
When insiders start selling their shares, they are likely doubting the company’s prospect or view the company’s stock as overpriced. Whatever reason they have to sell, it is a perfect opportunity or signal to take a short on stocks. However, this shouldn’t be the only signal for making a trading or an investment decision, but it can be a strong reason for making a selling decision. Recently there has been a prominent insider sell-off in the stock market. Vulcan Materials Company (NYSE: VMC) sold it shares at an average price of $86.39. The chairman, president, and CEO Thomas Hill sold a total of 92667 shares. As a result of the transaction, the insider got $17,272,011.11. The company, last month, reported a second-quarter revenue increase of 2.9% year-over-year to $1.36billion, missing the estimate of $1.38billion. Steel Dynamics, Inc. (NASDAQ: STLD) at an average price of $70.99, the president and CEO Mark D Millett sold a total of 155563 shares. As a result of the transaction, the insider received $11,043,109.75. Recently, Seaport Global started coverage on steel dynamics with a buy rating and announced a price target of 75$.
Williams-Sonoma, Inc. (NYSE: WSM) at an average price of $186.32, EVP & General counsel David R. King sold a total of 20000 shares. The insider got $3,726,318.32 from selling those shares. Recently, the company reported better and unexpected Q2 results. The executive vice president of Fossil Group, Inc. (NASDAQ: FOSL), Gregory A McKelvey, also at an average price of $13.41, sold a total of 15000 shares. The insider got $201,150.00 from selling those shares. Last month, the company reported a second-quarter FY21 sales growth of 58.7% year-on-year, to $410.9 million, going beyond analyst consensus value of $333.50 million.