U.S. stocks opened higher this morning 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.
KLA
- The Trade: KLA Corporation (NASDAQ: KLAC) Executive Vice President Oreste Donzella sold a total of 2,417 shares at an average price of $334.86. The insider received around $809.36 thousand from selling those shares.
- What’s Happening: Morgan Stanley (NYSE:MS) recently maintained KLA with an Equal-Weight and lowered the price target from $381 to $358.
- What KLA Does: Hyatt is an operator of 1,162 owned (5% of total rooms) and managed and franchise (95%) properties across roughly 20 upscale luxury brands, which includes vacation brands (Apple (NASDAQ:AAPL) Leisure Group, Hyatt Ziva and Hyatt Zilara), the recently launched full-service lifestyle brand Hyatt Centric, the soft lifestyle brand Unbound, and the wellness brand Miraval.
Campbell Soup Company (NYSE:CPB)
- The Trade: Campbell Soup Company (NYSE: CPB) Executive Vice President Adam Ciongoli sold a total of 18,321 shares at an average price of $50.00. The insider received around $916.06 thousand as a result of the transaction.
- What’s Happening: Credit Suisse (SIX:CSGN) reiterated a Neutral rating on the shares of Campbell Soup with a price target of $52.00.
- What Campbell Soup Does: With a history that dates back around 150 years, Campbell Soup is now a leading manufacturer and marketer of branded convenience food products, most notably soup.
Automatic Data Processing
- The Trade: Automatic Data Processing, Inc. (NASDAQ: ADP (NASDAQ:ADP)) Corp. VP John Ayala sold a total of 27,936 shares at an average price of $242.42. The insider received around $6.77 million from selling those shares.
- What’s Happening: Automatic Data Processing, during July, reported better-than-expected Q4 EPS and sales results
- What ADP Does: ADP is a provider of payroll and human capital management solutions servicing the full scope of businesses from micro to global enterprises.
- The Trade: Microsoft Corporation (NASDAQ: NASDAQ:MSFT) EVP, Chief Financial Officer Amy Hood sold a total of 75,351.395 shares at an average price of $259.47. The insider received around $19.55 million from selling those shares.
- What’s Happening: The company’s stock dropped about 9% over the past month.
- What Microsoft Does: Microsoft develops and licenses consumer and enterprise software. It is known for its Windows operating systems and Office productivity suite.
- The Trade: AutoNation, Inc. (NYSE: AN) 10% owner Edward S. Lampert sold a total of 4,262 shares at an average price of $124.59. The insider received around $531 thousand from selling those shares.
- What’s Happening: Argus Research recently initiated coverage on AutoNation with a Buy rating and announced a price target of $150.
- 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.
Read at Benzinga