Active Stock: Sheryl Sandberg Sells Facebook (NASDAQ FB) Shares

Sheryl Sandberg from Facebook Inc (NASDAQ FB) is leaning in on the stock, selling 283,000 shares at a price of $74.33 in the social networking company as algorithmic traders are watching longer term support levels. After Sandberg’s sale she holds nearly 5.1 million shares with a total market value near $382 million.

Insider selling at Facebook (FB) has totaled more than $19 billion while insider buying is near $1 million. Sheryl Sandberg’s sale comes as earlier in November chief product officer Chris Cox reported in a Form 4 that he sold 5,437 shares of class-A common stock at $75.35 per share, leaving him with a total of 574,851 shares.

Mike Schroepfer, the company’s chief technology officer, exercised 35,000 restricted stock units that were set to expire on January 11, 2019, exercising the right to purchase the stock nearly 5 years before the exercise date. He promptly turned around and sold the newly acquired shares at $75.50. Schroepfer has 261,454 shares he still owns in the company.

Facebook Inc: Offloading of Shares Continue

In a forthcoming interview on the podcast Wall Street Unfiltered, David Miller, portfolio manager of the Catalyst Insider Buying Fund and the Catalyst Small-Cap Insider Buying Fund, which was named the top equities mutual fund by The Wall Street Journal, reveals the importance of insider buying and selling.

His fund has significantly outperformed the general market by buying when insiders buy and selling when insiders sell. In 2013, for example, the long only large cap fund was up over 38 percent and the fund has outperformed its market index benchmark in every year since its existence.

According to the American Association of Individual Investors, insider buying is more significant than selling. Sellers have a variety of reasons for their action, not just problems with the stock. This can include estate planning, portfolio diversification, paying taxes, or funding a college education or a new roof. Insider sales occur more often than buyers, as insiders normally sell two to three shares for each share purchased. Buyers are a more significant statement because it could indicate the stock is cheap.

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Facebook Inc (NASDAQ FB) Business News

In regards to Facebook Inc (NASDAQ FB), if selling were to occur with volatility and volume, holding the stock under $69, it could trigger additional selling. This might not happen through the balance of 2014, but could occur in 2015.

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