10 Stocks Insiders Are Selling Like Crazy

NEW YORK ( Insider Monkey ) -- Insider sales usually are non-informative. Stocks sold by insiders don't go down, on the average. This is because most insider sales transactions are done for diversification or demand for liquidity. So, the lists of largest insider sales published in the Wall Street Journal or Barron's really don't mean much.

Recent research on insider selling has shown that stocks sold under the 10b5-1 plans have large negative abnormal returns. The magnitude of the abnormal returns is about 70 basis points per month calculated by using Carhart's four factor model.

Insider Monkey, your source for free real-time insider trading data, compiled the list of 10 stocks insiders are selling like crazy under 10b5-1 plans over the past few weeks:

Netflix
1. Netflix ( NFLX): Netflix insiders have been exercising their options and selling shares immediately for quite some time now. Theodore Sarandos sold more than 25,000 shares and netted nearly $4 Million in November. Barry McCarthy exercised 100,000 options and sold them for more than $200 each. He netted more than $17 Million. You can check other Netflix insider sales.


2. Keynote Systems ( KEYN): Donald Aoki sold more than 75,000 shares this week. There are several other KEYN insiders selling.

3. MetroPCS Communications ( PCS): Roger Linquist sold 40,000 shares under a 10b5-1 plan adopted on Nov. 8, 2010. There are several other large insider sales in PCS.

4. Nanometrics ( NANO): Norman Coates, a director of Nanometrics, sold 50,000 shares under a 10b5-1 plan on Tuesday. Several other insiders sold NANO shares over the past few months.

5. The E. W. Scripps Company ( SSP): Richard Boehne sold more than 75,000 shares at $10 under a 10b5-1 plan adopted this summer. Several other insiders have been selling as SSP climbed more than 30% over the past three months.

6. Citrix Systems ( CTXS): David Henshall, the CFO of Citrix, exercised 50,000 options and netted around $1.5 million under a 10b5-1 plan. (See other insider sales in CTXS.

7. Sempra Energy ( SRE): Debra Reed exercised and sold more than 40,000 options. She netted more than $1 million.

8. Martha Stewart Living Omnimedia ( MSO): Martha Stewart sold 83,333 shares under a 10b5-1 plan. We think she is being cautious this time. Charles Koppelman is the only other insider who sold over the past three months.

9. Varian Medical Systems ( VAR): Dow Wilson sold nearly 50,000 shares under a 10b5-1 plan.

10. Qualcomm ( QCOM): There are several insiders selling QCOM shares under 10b5-1 plans.

This article was originally published at Insider Monkey.

>To see these stocks in action, visit the 10 Stocks Insiders Are Selling Like Crazy portfolio on Stockpickr.

This commentary comes from an independent investor or market observer as part of TheStreet guest contributor program. The views expressed are those of the author and do not necessarily represent the views of TheStreet or its management.

More from Opinion

Throwback Thursday: Intel Edition

Throwback Thursday: Intel Edition

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

Intel's Next CEO Should Try Harder to Protect Its Flanks Against AMD and Others

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

3 Warren Buffett Stock Picks That Could Be Perfect for Your Retirement Portfolio

Wednesday Wrap-Up: GE and Facebook

Wednesday Wrap-Up: GE and Facebook

PayPal Strikes Again, Facebook, and AT&T -- 3 Tech Stories You Must Know

PayPal Strikes Again, Facebook, and AT&T -- 3 Tech Stories You Must Know