I’ve been using http://openinsider.com/ as a way to see what the insiders of companies are doing and would like some clarification.
Items highlighted in yellow indicate a ‘Sale of securities on an exchange or to another person (after option exercise)’
Is this necessarily a bad thing? If I understand correctly, insiders can receive stock options as a form of compensation that allow them to purchase shares of the company at a discount price. They only have a certain amount of time to execute their options or else they loose them.
If the insiders own a considerable amount of shares, say 20%, does a lot of activity in this area indicate trouble or just that they’re exercising options otherwise they’ll lose them?
Leave a Reply