Did Staples Executives Sell Millions In Stock On Privileged Information?
Staples Inc. (NASDAQ:SPLS) made headlines on August 15, when it announced that it had cut its outlook due to slowing global demand, which came on top of an earnings report that showed worse-than-expected second quarter financial results.
But investors also turned their attention to the company, as heavy insider trading was reported to the SEC in weeks leading up to the announcement.
According to Reuters, Staples said it expects sales to continue to fall throughout the rest of 2012 as the U.S. economy stalls and the European crisis continues. After the announcement, the company's shares dropped as much as 16.8 percent - the lowest reading since 2003.
Investors typically see the actions of Staples as a strong measurement of global economic house, as its sales are typically tied closely with white collar activity.
"The weakness in Europe was not a surprise, but the deterioration in the U.S. was more significant than anticipated," said Janney Capital Markets analyst David Strasser.
However, company officials may not have been surprised by the results, considering executives sold $6.11 million in insider transactions in the three months leading up to the announcement.
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