Are TIBCO Insiders Trading On Privileged Information?
After TIBCO Software Inc. (NASDAQ:TIBX) was downgraded by a ThinkEquity LLC analyst on Tuesday, the company's stock fell sharply, but managed to recover by afternoon trading. The downgrade, however, was preceded by major insider trading activity among TIBCO executives, which was reported to the SEC.
According to Bloomberg, ThinkEquity analyst Yun Kim told clients in a note that there were "lingering organizational issues" within TIBCO's organization that if not checked could result in a "sizeable headcount reduction." This led Kim to downgrade TIBCO shares to "Hold" from "Buy."
Kim said that job cuts were likely for the California-based software company, and added that it could even slash 10 percent of its American workforce.
The downgrade sent share of the company down as much as 11 percent during heavy trading, however the stock was able to climb back up by close to finish down only 3 percent at $31.40.
It appears insiders at the company aren't sticking around to see where the stock goes from here, considering company officials have sold $7.42 million in the last three months.
Why do you think these insiders are selling?
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