Are American Capital Agency Insiders Trading On Privileged Information?
In the months leading up to an announcement of a public offering of common stock, company officials with American Capital Agency Corp. (NASDAQ:AGNC) were making insider transactions at higher volumes. With the stock falling sharply on the news of the common stock offering, this may be a red flag that company officials were privy to information that led them to unload shares.
The company announced on July 17, 2012, that it plans to make a public offering of 32 million shares of common stock, and grant the underwriters an option to purchase another 4.8 million shares of common stock in the coming 30 days.
American Capital said it plans to use what it makes from the sale to purchase additional securities as demanded by the market and other general corporate purchases. According to The Wall Street Journal, the company had about 300 million shares outstanding as of April 30.
It seems company insiders at American Capital had an idea of what may happen after the announcement. In the last three months, officials sold $59,880 in shares ranging in value from $31.56 to $33.08.
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