Why Are SanDisk Officials Selling Millions In Stock?
Shares of SanDisk Corporation (NASDAQ:SNDK) jumped 15 percent on Friday after the company, which specializes in making memory chips for computers, reported second-quarter results that beat many analysts' estimates.
What's more, the company says its third quarter looks strong, and that it expects revenue to be between $1.15 billion and $1.25 billion.
"The third quarter guide was modestly below consensus, but likely better than feared and should stop the bleeding for investors that have seen shares fall 29 percent this year," Raymond James analyst Hans Mosesmann wrote in a note.
The company's shares climbed 14 percent to $40.14 on the good news, and set itself apart from the rest of the chip-making world, which has been gloomy for weeks. SanDisk's largest competitors, Intel and Advanced Micro Devices, have all given warnings about their future quarterly reports.
But despite what looks to be a pretty picture for the company, president and CEO Sanjay Mehrotra is painting a different scene. On July 11, he sold 10,000 share valued at $34.26 each, resulting in a profit of $100,800. In the last three months, company insiders have sold a sold of $2.36 million through insider trades.
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