The Dow Jones jumped by more than 400 points on Wednesday. Investors, meanwhile, focused on some notable insider trades.
When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
Below is a look at a few recent notable insider sales. For more, check out Benzinga's insider transactions platform.
- The Trade: Snap Inc. (NYSE:SNAP) Chief Technology Officer Robert Murphy sold a total of 1,167,374 shares at an average price of $9.80. The insider received around $8.82 million from selling those shares.
- What’s Happening: Snap recently reported worse-than-expected Q2 results, announced a reduction in its hiring rate and did not provide guidance.
- What Snap Does: Snap, which refers to itself as a camera company, has one of the most popular social networking apps, Snapchat, in developed regions such as North America and Europe.
- The Trade: AutoNation, Inc. (NYSE:AN) 10% owner Edward S Lampert sold a total of 221,989 shares at an average price of $112.43. The insider received around $24.96 million as a result of the transaction.
- What’s Happening: AutoNation recently reported a second-quarter FY22 sales decline of 2% year-on-year to $6.87 billion, beating the consensus of $6.84 billion.
- What AutoNation Does: AutoNation is the largest automotive dealer in the United States, with 2021 revenue of $25.8 billion and about 250 dealerships at nearly 350 locations, plus 57 collision centers.
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- The Trade: Domino's Pizza, Inc. (NYSE:DPZ) Director Andrew Balson sold a total of 14,000 shares at an average price of $385.64. The insider received around $5.4 million from selling those shares.
- What’s Happening: Domino's Pizza recently reported second-quarter FY22 sales growth of 3.2% year-on-year, to $1.06 billion, beating the consensus of $1.05 billion.
- What Domino's Pizza Does: Domino's is a restaurant operator and franchiser with nearly 19,000 global stores across more than 90 international markets at the end of 2021.
- The Trade: BlackRock, Inc. (NYSE:BLK) President Robert Kapito sold a total of 37,588 shares at an average price of $632.88. The insider received around $23.79 million from selling those shares.
- What’s Happening: BlackRock Inc. (NYSE:BLK) has agreed to acquire Vanguard Renewables, a Boston-area company that works with dairy farmers and food companies to produce renewable natural gas for utilities and energy firms, reported Wall Street Journal.
- What BlackRock Does: BlackRock is the largest asset manager in the world, with $8.487 trillion in AUM at the end of June 2022. Product mix is fairly diverse, with 51% of the firm's managed assets in equity strategies, 29% in fixed income, 8% in multi-asset class, 9% in money market funds, and 3% in alternatives.