BMY Gets Better Rating, But Company Insiders Are Still Selling Off
Bristol Myers Squibb Co. (NYSE:BMY) was recently upgraded by Standard and Poor's Ratings Services from A-1 to A-1+, but despite the favorable news, company officials, including director James Cornelius, have been selling off millions of shares in insider trades.
The upgrade was based on S&P's revised criteria for the relationship between long-term and short-term ratings, and also the company's strong liquidity.
"We believe BMS will use its substantial financial resources to continue acquiring products, such as the recent $2.5 billion acquisition of Inhibitex Inc." S&P said. "Despite this acquisition, we expect BMS to remain essentially unleveraged in 2012, giving partial credit to its substantial reserves of cash and investments."
But despite the positive rating, company insiders at Bristol Myers have sold off a total of $3.23 million in shares, which ranged in price from $32.48 to $34.24 each. Throughout May, Cornelius filed 10 insider trading reports with the Securities and Exchange Commission, selling 50,000 shares ranging from $32.48 to $33.51 each.
After receiving an upgrade from S&P, why do you think Cornelius has been selling so much stock in the company?
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