In the last 4 days salesforce.com, inc. (NYSE:CRM) insiders have sold $24 million worth of stock, just before the company reports quarterly earnings on the 28th of February. What is even more curious, as if if dumping stock during earnings week is not curious enough is that most of the shares sold were RSU’s that did not expire in most cases for 2-3 years (here is a link to the page). Even worse is almost all of these shares are NOT indicated to be part of a 10b5-1 trading plans in which insiders buy/sell shares at predetermined intervals/dates/price targets. They are just deciding in the last week to sell these shares ahead of earnings.
I have long detailed the continued liquidation of insider holdings at salesforce.com, inc. (NYSE:CRM) ($89 million last two months, $268 million last two years, $572 million last three years) and am sad to say it continues unabated. What has changed though is the frequency that options and RSU’s are being exercised and sold two to four years ahead of their expiration. THAT has increased.
It is as if insiders are winking at you and letting you know the party in the share price is coming to an end (god knows the fundamentals don’t even support a $100 share price), they just are not going to say it out loud…….they still have plenty of shares to dump first.