Corporate insiders has shown a mixed track record in timing their stock disposals. Their rush to sell at the start of this year proved prescient as the S&P 500 rose to an all-time high in February before crashing. So did the selling spree in January 2018, when the benchmark index’s advance to what was then a record preceded a correction. The dash to bail in 2017 and 2019, however, was met by continued equity gains.
“When the market is trading as it is, very close to all-time highs, it gives the optics that insiders don’t believe the market being at these levels,” Robert Pavlik, a senior portfolio manager at SlateStone Wealth, said by phone. “It presents the appearance that they think their stocks are overvalued. It may be true, but there is no definite way to tell.”
Open-market stocks sales, excluding those set up through 10b5-b programs or related to options, that are reported in Bloomberg data in July include:
• JB Hunt Transport Services Inc. Chairman, James K. Thompson: $2.03 million
• Costco Wholesale Corp.’s James P. Murphy, Executive Vice President: $1.63 million
• Broadcom Inc.’s Charlie B. Kawwas, senior vice president & chief sales officer: $1.61 million
• Medical Properties Trust Inc. CEO, Edward K. Aldag Jr.: $7.42 million; Chief Operating Officer, Emmett E. McLean: $3.8 million; and Chief Financial Officer, R. Steven Hamner: $4.21 million
• Five Below Inc. Chairman, Thomas G. Vellios: $10.3 million
• CarMax Inc.’s Ronald E. Blaylock, a board member: $910,000
• Workhorse Group Inc. CEO, Duane Hughes: $699,906
This article was provided by Bloomberg News.