Boston, MA 01/21/2014 (wallstreetpr) – Insider trading in Micron Technology, Inc. (NASDAQ:MU) stock has been noted this month and they all revolve around selling of the stock. Since the said selling occurred, the stock has plummeted in price by significant margins and this begs the question: What gives?
It is public knowledge that MU ended 2013 as one of the best performers in the semiconductor industry. In fact, the company was able to improve its global ranking from position 10 to position five. The company’s strong performance was noted due to the surge in demand for memory at a time when prices were also good. The incident in manufacturing plant of one of its competitors also served to boost its business performance in 2013.
Following Micron Technology, Inc. (NASDAQ:MU)’s better than expected performance metric as seen in revenue and profit growth, coupled with meteoric rise of the stock, analysts stopped at nothing to recommend a “buy’ for the stock to investors. However, the recently noted unique insider selling of the stock could pour cold water on the bullish sentiments that the stock has gathered over the past several months.
Insider selling
The company’s CFO and VP Finance Ronald Foster on January 10, reduced his holding of the stock by 215,000 share at an average price of $23.59. Since this trading, the stock of MU is 5.13 percent going by Friday’s closing. VP WW Operations Brian Shields also sold 240,000 shares of his holding in MU at an average price of $23.44. This transaction took place on Jan 10, and since then the stock is down 4.52 percent.
Another transaction of the stock was carried out by VP DRAM Solutions Brian Shirley who reduced his holding of the stock by 147,000 shares on Jan 14, at an average price of $23.58. The stock is down 5.09 percent since the disclosure of this transaction. Things did not end there, Joel Poppen, Corporate Secretary, sold 37,000 shares on Jan 15, at an average price of $23.63 and the stock has decreased 5.29 percent since the disclosure of that transaction.
Bottom line
Insider trading offers useful investment inside to traders holding or considering taking position in a stock. They say in Wall Street that there is only one reason for insider buying but several reasons for insider selling. So then, the reported insider selling in Micron Technology, Inc. (NASDAQ:MU) should come as a wakeup call to perform due diligence on the stock before making investment decision.
