3 Power Stocks With Heavy Insider Selling at Year’s End

As 2013 was winding down, so were the stock positions of insiders at FB and two other companies

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Facebook (FB)

Facebook185 3 Power Stocks With Heavy Insider Selling at Year’s EndI am reluctant to include a relatively new IPO stock in this group, because it’s very possible that company insiders could simply be taking some profits after the first run-up of Facebook (FB) stock. However, the large number of shares recently being sold in social media company make me suspicious, and I wonder if insiders think their stock is fully valued for the moment.

In the month of December, CEO Mark Zuckerberg sold 41,350,000 shares for $55.05, generating $2.28 billion from the sale! Meanwhile, Director Marc L. Andreessen sold 1,645,239 shares for $55.05, garnering a slick $90.57 million.

Andreessen had also sold shares in early November, taking in more than $59 million from that transaction. A number of other insiders also sold large numbers of shares, but they were automatic sales, making them less significant in terms of stock price performance.

So is Facebook a sell? Not necessarily, although it does still look a bit overextended for the short term, even after declining from $57.50 to the current price of $54.65. In fact, on any further drop to the 50-day moving average of $50.26, investors might do well to pick up some shares for the long term.

Article printed from InvestorPlace Media, http://investorplace.com/2014/01/3-power-stocks-strong-insider-selling-years-end/.

©2015 InvestorPlace Media, LLC

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