Did Monster Officials Know About Share Price Fall?
Monster Beverage Corp's (NASDAQ:MNST) stock fell sharply on Thursday, August 9, after the company reported disappointing second-quarter results that left investors worried about the company's future.
But in the months leading up to the report's release, company officials at Monster sold off millions of dollars in stock through insider transactions, suggesting they may have been making trades on privileged information.
According to Forbes, the company reported net income of $109.8 million, or 59 cents per share, in the second quarter. Although this was a 31 percent increase from profits in the same period last year, it was not enough to satisfy Wall Street analysts, who estimated the beverage company would bring in $113.6 million, or 61 cents per share.
Sales also fell below what analysts were anticipating, with revenue at $592.6 million, below the $596.1 million experts had predicted. In response to the report, shares fell nearly 8 percent to $62.55, marking a stark contrast from the growth it has seen for the past 12 months.
But this doesn't appear to be good enough news for officials at monster, who have sold $66.84 million in the last three months.
Why do you think these executives are selling stock?
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