Are TiVo Insiders Trading On Privileged Information?
Live television recording company TiVo Inc. (NASDAQ:TIVO) recently reported a loss in the second quarter, and although the slump was smaller than analysts had expected, it still sent company officials scrambling to make insider trades.
According Bloomberg, the net loss of $27.7 million, or 23 cents per share, was greater than the $19.6 million, or 17 cents per share, loss reported in the same period last year. However, it was not a 24-cent-per-share loss forecast by analysts, who say a last minute surge in new subscriptions may have helped the company.
TiVo appears to be performing well despite the insider selling, as more cable operators are licensing the company's technology to use in boxes that connect TVs directly with the internet. According to Tom Rogers, TiVo's CEO, this proves that even in rough economic times, the public will still shell out for cable services.
“Broadband is one of those things that people are finding room for in their budgets, and what TiVo does is bring the benefits of broadband video to the television,” Rogers said.
This positive sentiment doesn't sync up with senior vice president of products and revenue Jeffrey Klugman's recent actions though. On August 6, Klugman sold 2,802 shares valued at $8.72, walking away with $24,430.
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