https://www.nasdaq.com/market-activity/stocks/xrx/insider-activity
Classy AF move.
5 replies (most recent on top)
The OP is implying the executives are selling stock before earnings because bad news is coming. A lot of executives get paid with restricted stock units (RSUs), and when those shares become theirs, they have to pay taxes on them. So some shares get automatically sold just to cover the taxes, which is what the filing says. This kind of thing also happens every year if you look at older filings. The transaction code is F, which usually means it was for taxes, not a choice to sell, which would be an S transaction code. So this sale doesn’t really prove anything bad is coming on Thursday, and it doesn't mean good news is coming either.
@a2 absolutely nonsense. The shares are income to the holder as they vest. Roughly 1/3 of the vested amount is sold and the cash submitted for withholding, just like a paycheck.
CEO "sales" are just for tax liability. see "notes" section
https://www.secform4.com/filings/1770450/0001193125-26-018438.htm
These aren't sales. They are taxation trade off's after LTI was awarded on its anniversary date. Essentially a restricted stock becomes freed up. they take a portion of that stock and immediate "act on the option" to convert those stocks directly into money to pay for the remainder of the stock option they were awarded so they don't have to pay tax on them when the DO sell in the future.
I am awarded 1000 shares, it's on a 3 year, once annual release. so, every year on the anniversary i get 333 shares released to me. the first year i use all of that as soon as its released to pay for the FUTURE tax liability that will come with the other 667 shares.
so, if I use the tax option liability at $2.22 cents if by some miracle the reminder goes to $10 per share my "tax liability" is already taken care of regardless of its value. its one small way that super rich people stay super rich.
You'll see the same thing in major crypto trades too. there will be a sharp decline/drop in its value. people holding that purchased at 100K will sell at 80K and then immediately rebuy it. they STILL have their 1 bitcoin BUT they get to claim an 20K "actualized loss" on their taxes.
Rich people get rich and stay rich by learning how to avoid paying taxes. Imagine if YOU never once paid a federal or state tax and all that money was allowed to compound and grow for as long as you've been paying taxes
I guess XRX doesn't have a blackout period, like every other public company on the NASDAQ....