High-Profile Insider Trading: Key Sales and Buys by Top Executives in Late May

In late May, notable insider trading activities were observed involving high-profile executives from major corporations, including General Motors, Salesforce, Squarespace, Applied Materials, and Texas Roadhouse. These trades, disclosed in securities filings and data compiled by VerityData, provide insight into the market outlook and sentiments of these corporate leaders.

Significant Insider Sales

General Motors ($GM(GM))CEO Mary Barra sold over $27 million worth of GM stock on May 28, 2024, offloading 626,300 shares at an average price of $43.46. This transaction was executed under a 10b5-1 trading plan, which allows insiders to pre-plan stock trades to avoid allegations of insider trading.

Salesforce ($CRM(CRM)) CEO Marc Benioff sold $12.18 million worth of Salesforce shares between May 24 and May 30, 2024. He sold 45,000 shares at an average price of $270.70, also under a 10b5-1 trading plan. Notably, Salesforce's stock dropped more than 19% on May 30, following the release of its first-quarter report.

Squarespace ($SQSP(SQSP)) CEO Anthony Casalena sold 135,100 shares for a total of $5.88 million at an average price of $43.50. These sales were part of a 10b5-1 trading plan enacted on August 11, 2023.

Applied Materials ($AMAT(AMAT)) CFO Brice Hill sold 20,000 shares at an average price of $222.34, totaling $4.45 million.

Texas Roadhouse ($TXRH(TXRH)) CEO Gerald Morgan sold 15,000 shares at an average price of $171.70, amounting to $2.58 million. This sale, conducted under a 10b5-1 trading plan enacted on February 27, 2024, reduced Morgan's holdings by 16%.

Notable Insider Purchases

In contrast to the sales, there were significant insider purchases in the final days of May, primarily from lower-profile executives.

Oxford Lane Capital ($OXLC(OXLC)) CEO Jonathan Cohen and President Saul Rosenthal each purchased 4.63 million shares at an average price of $5.40, totaling $25 million. This substantial buy is significant given the firm's market cap of less than $2 billion.

FTAI Aviation ($FTAI(FTAI)) CEO Joseph Adams Jr. bought 59,000 shares at an average price of $82.00, totaling $4.84 million. These shares were acquired in an underwritten public offering that closed on the preceding Thursday.

Petco Health & Wellness ($WOOF(WOOF)) Director Cameron Breitner, a senior advisor with CVC Capital Partners, one of Petco's largest shareholders, bought 750,000 shares at an average price of $3.14, amounting to $2.35 million.

Agree Realty ($ADC(ADC)) Director John Rakolta Jr. purchased 20,000 shares at an average price of $59.32, for a total of $1.19 million.

Claros Mortgage ($CMTG(CMTG)) CEO Richard Mack bought 160,000 shares at an average price of $7.20, totaling $1.15 million. Shares of Claros Mortgage had declined nearly 17% over the prior three months.

Implications of Insider Trading

Professional fund managers closely monitor insider trading activities as they can signal an executive's confidence or concerns about their company's future prospects. The recent sales by high-profile executives like Barra and Benioff might indicate their perspectives on their companies' stock valuations or future performance. Conversely, significant purchases by insiders at smaller firms could reflect optimism about their companies' growth potential or undervaluation.

These insider trades offer valuable insights for investors, highlighting the need to consider the broader context and timing of these transactions. As always, while insider trading activities can provide useful information, they should be considered as part of a comprehensive investment strategy.

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