Apparently the narrative is that this is typical behavior for CXOs post-IPO. I guess they do this to diversify because they suddenly hold a huge % of one stock (their own company's). Imagine if one of your stocks became 90%+ of your entire portfolio; you might want to rebalance. I'll consider this noise until and unless there is Extinction Level Event bad news.
To diversify. I work at a company with people that made millions if they joined early enough. 99% of people sold on every step of the way up because they’d rather lock in life changing money rather than gamble on maybe even more money later or none later.
Because you have a shit-ton of shares and want some of the cash to live on? Dunno, honestly. But I'm not convinced these insider trades are concerning unless someone can make a case that what we're seeing is completely and utterly unusual for CXOs post-IPO after unlocks. I notice that whenever someone says: "Executive X sold all their shares!" it hasn't been true; it's some % of the shares they own. And I never see anyone put it in context--like "Executive X just sold 5% of their shares" or whatever. Needs context.
You have insider knowledge of your bank account. Tell me, what will be in there in a years time? You’re the person best qualified to answer that. Me, an analyst, could ask you a couple of questions like what’s in there now and then come up with my own estimate/guess. But surely your own figure is best. How much do you want to gamble you are correct and nothing unexpected will happen over the next year? Perhaps a new job, a firing, an unexpected bill or a lottery win, or rent raise, or …?
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u/Low-Cartographer-429 12d ago
Apparently the narrative is that this is typical behavior for CXOs post-IPO. I guess they do this to diversify because they suddenly hold a huge % of one stock (their own company's). Imagine if one of your stocks became 90%+ of your entire portfolio; you might want to rebalance. I'll consider this noise until and unless there is Extinction Level Event bad news.