Why Are Aruba Networks Insiders Selling Millions As Stock Surges?
Shares of Aruba Networks, Inc. (NASDAQ:ARUN) surged on Friday after the mobile device maker reported fourth-quarter financial results that beat not only analysts' estimates but even the company's own forecast.
But even with stocks trading at their highest level in a year, company executives are still selling millions of dollars' worth of shares through insider transactions.
According to Bloomberg, the company's revenue in the July quarter climbed 22 percent to $139.2 million, beating a forecast made in May that called for sales of $136 million to $138 million. Profit totaled 18 cents per share, again beating Wall Street estimates, which pegged the company to bring in a high of 17 cents per share on profit of $136.9 million.
Joanna Makris, an analyst at Mizuho Securities Inc., said Aruba reported a "solid year-end finish, and frankly better than we expected."
"We continue to view Aruba as a primary beneficiary of pervasive mobile device and tablet adoption in the enterprise - a market we believe is hitting an inflection point, requiring an architectural shift in the access network," she added.
But with such a strong report and heavy praise from analysts, why have company insiders sold $14.46 million in shares in the last three months?
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