Hewlett-Packard CEO & CFO Sell $6.8 Million Shares

Insider behavior has always mattered since research based on real-time signals has often demonstrated that a properly modeled picture of insider actions usually provides the most accurate reflection on the prospects of a company and that of the markets in general, going forward.

According to SmarTrend News, the market sentiment among top tech firms like Hewlett-Packard (NYSE:HPQ) seems to be waning. A regulatory filing with the Securities and Exchange Commission dated Aug. 24, 2009, shows HPQ’s CEO Mark Hurd and his CFO exercised a combined $6.8 million in options. Mr. Hurd sold almost $4.3 million in stock, or approximately 100K shares, which he had received after exercising options.

While the transaction, notes SmarTrend, was done in accordance with a trading plan he struck in May, the picture is still unclear as to why he sold the stock. Hurd was able to rake in a 50% profit in the position, selling at exactly twice his basis price of $21.73.

Be the first to comment

Leave a Reply

Your email address will not be published.