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March 5, 2008
Google: Insider Selling Mounts
The WSJ has a piece today talking about mounting insider selling at Google. No surprise, given the company's status as a bubble baby that employees are selling in droves at the first major downturn in the company's stock.
Google insiders have sold stock in every month since November 2004, often through prearranged stock-trading plans and sometimes combining stock sales with the exercise of stock options. Insiders have sold a combined $10.1 billion worth of Google shares since the end of 2004, according to data-provider Washington Service.
... Mr. Moreland said sales by the company's founders, Sergey Brin and Larry Page, are to be expected and aren't worrisome because they still hold large stakes in the company. He said he was more interested in sales by lower-level executives, and the lack of insider purchases.
"So many of these insiders have been so anxious to sell or exercise their options, and so unwilling to hold much of anything long, and that's a particular red flag to me," he said.
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anyone know how the Google TSO plan is working out?
Why would sales of stock by low level employees be a red-flag? They are way long Google by virtue of being on the payroll. I'd say selling and diversifying your portfolio out of tech is a good idea if your paycheck is from a tech high-flyer.
According to http://www.poweroptionsapplied.com/insider.asp GOOG's insider buying and selling is a bullish indicator.
People afraid of options going underwater maybe? I think GOOG will be just fine and hope stuff like this perpetuates so I can buy at a bargain later on.