- 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…”
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