I see company is slowly advancing (as per their website) but insiders are selling the stocks - Zacks is recently upgraded to rank 2 (which is a good buy) -based on earning estimate revision So I am more confused as to why insiders are selling in last 6 months ..net 2,618,361 shares sold
The same insider who sold shares exercised options to purchase the same number of shares on the same days at an inverse o.o.m. lower price. Furthermore, such seemingly "insider" trades are often setup on a predetermined schedule under 10b5-1.
Very insignificant amount of insider selling in 2024. The 2 largest sales are from a holding company owning more than 10% of the company so not even from an individual. Sale + OE isn't really a sale. Insiders are given stock options as part of their payment plan. When the options expire they will often exercise the option and immediately sell the stock otherwise they'd have to come up with cash to hold the stock. Also, the amount of stock sold relative to the amount they own is very small. Insiders can sell for many reasons so I usually pay more attention to insider buys. If insiders are selling more than 50% of the stock they own and it's not option exercise sales then it's more meaningful.
Can you please explain a bit - You said employees get stock options - so they get call options or put options - I guess put options because after exercise they have to sell the stocks same day ? otherwise they will get margin call (assuming they dont have funds in the account?) Also you said holding company selling is not significant - Please explain why its not significant? If SES is doing good why would anyone sell the stocks?
Stock is down 94 percent the last 5 years.Traded at 10 and change, last sale .76... Zacks rank is garbage Call up their money management arm and askw what their actual returns were
1-Insiders receive calls. If they own the 10 calls and the stock is trading at 15 they will usually exercise the calls which requires purchasing the stock for 10. Rather than coming up with the cash they immediately sell the stock which gives them $5 per share cash in their account. 2-A holding company selling isn’t a great sign but they’re similar to an investment firm. They’re trying to make money so they may want to invest some of the money elsewhere. There can be so many reasons an individual or company sells which is why I don’t consider it too important unless it’s a larger % of their total holdings. 3-Why would an insider sell? So many reasons. Looking at the chart of SES would suggest you’re buying a lottery ticket. Berkshire Hathaway insider recently sold a big chunk of his shares but that doesn’t mean the company isn’t doing good.
You might be the only investor looking at Zacks rating. The more you read the rating, financial analyst reports, financial statements, EPS numbers ... The more you suffer from data analysis paralysis. Simply look at the chart. The downtrend started 3 years ago, and it is approaching ZERO. Even the blind can see that the price is getting lower and lower and lower. It is true that the company is slowly advancing (to ZERO!). Do not assume AI companies will behave like NVDA. Next question you might ask: Temasek Holdings has billions and billions of assets. Why did Temasek Holdings buy SES AI in the first place? Then loop to the first sentence.
Rely on the chart rating. I'd rather buy on a break above the 1.90 area than catch this falling knife. Most AI companies are screaming higher. What's wrong with this company if it can't even get a bid in a booming business?