Insider Sales Make Waves as Blackberry Trades Lower
Blackberry (NASDAQ:BBRY) can’t seem to stay out of the headlines these days, seemingly everyday there is yet another news story making waves across the entire technology sector. Earlier in the week BlackBerry’s largest shareholder, Canadian insurance company Fairfax Financial, announced it hopes to buy the smartphone maker for $9 per share, only a slight premium to the trading price prior to the deal. Historically, this is an extremely low premium for a once-dominant company. On Wednesday morning shares of the company were trading well below the anticipated deal price, shares traded at $8.20 at the time of this writing.
However, the news today surrounds some interesting insider sales from high level management within the company. According to Canadian regulatory filings, Blackberry executives sold small blocks of the company’s stock on the day that the smartphone maker warned of a huge quarterly operating loss and massive job cuts. While the street has not claimed any misconduct on the part on management, some traders and investors alike are speculating to the intentions on management.
The filings showed that Chief Executive Thorsten Heins and Chief Financial Officer Brian Bidulka sold about 51.1 percent of their batches of newly vested shares on Sept. 20, netting C$121,107.68 ($117,600) and C$40,386.79 ($39,200), respectively. Not a bad payday for most, but realistically, this is chump changed for high level executives these days. In BlackBerry’s fiscal 2013, that ended March 2, it was disclosed Heins received nearly $3 million in restricted stock. Well, considering shares of the company have traded especially poor since Heins took control of the company it is questionable he should receive such significant compensation. The next few weeks are most certainly going to be volatile for shareholder. Personally, I’m leaving the trading to the professional computers on Wall Street.
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