Lexmark Stock Surges Amid Mixed Insider Trading Activity
Executives with Lexmark International Inc. (NYSE:LXK) have been actively buying and selling company stock for the last three months, painting a murky picture for investors who are weighing the company's outward success with the potential problems to which only insiders are privy.
According to Bloomberg, the U.S. printer maker announced it plans to cut about 13 percent of its workforce to lower costs and that it could potentially sell its inkjet technology. This led the company's shares to surge 15 percent - the most since July 2011 - to $21.90.
Demand for the company's printers has been on a gradual decline as more business customers view documents on computers and mobile devices. To make up for lower sales, the company looks to be selling assets and laying off workers, which Federico De Silva, an analyst at Gartner Inc., says makes the stock very attractive.
The health of Lexmark's shares is further convoluted by the range of insider buying and selling going on behind the scenes. In the last three months, officials have sold $144,720 in shares, while others have purchased $23,690 worth.
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