Peloton Execs And Insiders Sold Off Close To $500M In Stock Before It Crashed — Must Be A Coincidence

  • Peloton insiders and executives sold almost $500 million worth of their stock before its market price plunged, filings with the Securities and Exchange Commission show.
  • The company’s current stock is down more than 80% from its highs last year, and the company’s CEO and other people “in the know” sold millions of shares in the months leading up to the steep decline.
  • “One of the most well-accepted facts from decades of research on insider trading is that corporate insiders buy near bottoms and sell near peaks,” said Daniel Taylor from Wharton.

Robert Frank from CNBC writes:

Peloton executives and insiders sold nearly $500 million worth of their stock before its big decline, according to filings with the Securities and Exchange Commission.

The company’s stock is down more than 80% from its highs last year, and it hit a 52-week low of $29.11 Tuesday. Yet the company’s CEO and other executives sold millions of shares at prices over $100 a share in the months leading up to the big declines.

Company executives and insiders sold $496 million worth of their shares in 2021, according to SmartInsider. Virtually all of the sales were part of 10b5-1 plans, or prescheduled selling programs. It’s unclear how many of the sales were also linked to options exercises or options-related tax sales.

The big selling started when the stock started surging past $80 a share in the fall of 2020, and gained momentum in 2021 as the stock held above $100.

The company didn’t respond to requests for comment…”

See full story here.



Categories: Business, Economy, Government, Society, WTF?

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