Monster Beverage (MNST)
Shares of Monster Beverage (MNST) were sold by the following insiders:
- Chairman and CEO Rodney C. Sacks sold 130,000 shares for $60.52, pocketing $7.87 million
- Vice Chairman and President Hilton H. Schlosberg sold 130,000 shares for $60.50, generating $7.87 million from the sale
- Senior VP Thomas J. Kelly sold 8,804 shares for $59.40, picking up $522,958 from the sale
Monster is sporting a very lofty P/E of 35 today, and the stock has run up about 32% since October, so investors who own this stock should be really careful going forward. The RSI and Stochastic indicators are quite overbought, and while overbought doesn’t mean done, the stock at this lofty perch does entail more risk.
A lawsuit was recently filed against Monster in San Francisco, saying its high-caffeine drinks were dangerous to teenagers, but so far nothing has really come of that. Sales of their Monster drinks continue to be very strong.
So take heed of the insider selling at these 3 companies, and consider the hedging strategies I mentioned … but don’t push the panic button yet. There are good reasons why all three have been stellar performers over the last 12 months, and those reasons will probably continue for a while longer.
As of this writing, Ethan Roberts did not own a position in any of the aforementioned securities.