When CEOs of large companies sell their stocks, investors can’t help but notice.
After all, these decisions have a direct effect on the personal wealth of these insiders, which can say a lot about their beliefs about the future direction of the companies they run.
Considering that Big Tech stocks are among the most popular holdings in portfolios today and are backed by a collective institutional investment of $ 5.3 trillion, how do the CEOs of these organizations rank based on their insider sales?
|CEO||Store||Shares sold H1 2021||Share value (M $)|
|Jeff Bezos||Amazon (AMZN)||2.0 million||$ 6,600|
|Mark Zuckerberg||Facebook (FB)||7.1 million||$ 2,200|
|Satya nadella||Microsoft (MSFT)||278,694||$ 65|
|Sundar pichai||Google (GOOGL)||27,000||$ 62|
|Tim cook||Apple (AAPL)||0||$ 0|
Breaking Insider Trading, By CEO
Let’s dive into the insider trading activity of every Big Tech CEO:
In the first half of 2021, Jeff Bezos sold 2 million shares of Amazon’s value $ 6.6 billion.
This activity was spread over 15 different transactions, representing an average of $ 440 million per transaction. Altogether, that ranks him first by CEO insider sales, by total dollar revenue. Bezos’ tenure as CEO of Amazon ended shortly after the midpoint of the year.
In second place is Mark Zuckerberg, who has been much busier selling than the others.
In the first half of 2021, he unloaded 7.1 million Facebook shares on the open market, worth $ 2.2 billion. What makes these trades interesting is their large quantity, since he sold 136 days out of 180. On average, that’s $ 12 million worth of shares sold each day.
Zuckerberg’s record selling year in 2018 resulted in the sale of more than $ 5 billion in shares, but more than 90% of his net worth remains with the company.
Next is Satya Nadella, who sold 278,694 shares from Microsoft, worth $ 234 million. Despite this, Microsoft’s CEO still owns around 1.6 million shares, which is the largest of all insiders.
Microsoft shares have been in tears for several years now, and are owned by an elite trillion dollar club, which consists of just six public companies.
Fourth on the list is Sundar Pichai, who has been running Google for six years now. Since the beginning of 2021, it has been sold 27,000 shares through nine separate transactions, worth $ 62.5 million. However, Pichai still owns approximately 6,407 Class A shares and 114,861 Class C shares.
Google is approaching a $ 2,000 billion valuation and is the best-performing Big Tech stock, with stocks up 60% year-to-date. Growing their market share from US advertising revenue is a big factor.
Finally, Tim Cook, who has just passed a decade as CEO of Apple.
Meanwhile, shares rose more than 1000% and annual sales rose from $ 100 billion to $ 347 billion. That said, Cook has sold 0 share Apple in the first half of 2021. That doesn’t mean it hasn’t sold shares elsewhere, however. Cook also sits on Nike’s board of directors and has sold $ 6.9 million in stock this year.
Measure insider sales
All other things being equal, it is desirable for management to play the game and invest alongside shareholders. It can also be seen as an alignment of long-term interests.
A good measure of insider selling activity relates to existing ownership in the business. For example, selling $ 6.6 billion in stocks might sound like a lot, but when Jeff Bezos has 51.7 million Amazon shares left, it’s actually a small chunk and probably not a cause. of panic.
If, however, executives disclose large transactions relative to their total holdings, it might be worth digging deeper.