Did Equinox Officials Sell Stock On Insider Knowledge of REIT Conversion Plan Approval?
Shares of data center operator Equinix Inc. (NASDAQ:EQIX) were up on Thursday after the company's REIT conversion plan was approved, however this was not in line with insider trading reports, which showed executives have sold millions of dollars in stock in recent months.
According to Reuters, Equinix's board approved the plan to turn its business into a real estate investment trust (REIT), a trend among technology companies that allows them to save money due to a different tax structure.
"We have already seen several of our peers in the data center industry operate under a REIT structure, and we believe that this tax-efficient structure will enhance shareholder value and enable us to be even more competitive," CEO Steve Smith said.
This positive sentiment, however, is not supported by the company's executives, who in the last three months have sold $5.46 million worth of shares. CFO Keith Taylor sold 2,000 shares valued at $197.29 each on September 10.
Why do you think these insiders are selling despite a positive public report?
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