Twitter share: did investors get excited too soon?

Michael Montano, Engineering Lead bei Twitter (NYSE: TWTR), made a huge insider sale on October 5th, according to a new SEC filing.

What happened: A Form 4 filed Tuesday by the U.S. Securities and Exchange Commission shows that Montano was 4,500 Twitter shares at a price of $ 59.09. The total transaction was $ 265,905. Montano still owns a total of 573,837 Twitter shares valued at $ 36,614,530.

Twitter shares are trading at $ 63.81 on Friday morning, down 0.26% as of this writing.

Why insider trading is important

Insider trading should not be the primary vehicle for an investment decision, but it can be an important factor that an investor should consider.

In a legal sense, an “insider” is any shareholder who owns at least 10% of a company. This can include senior executives and large hedge funds. These insiders are required to inform the public of their transactions using a Form 4, which must be submitted within two working days of the transaction.

Get a free PDF report on Twitter: Download it for free here

When a corporate insider makes a new purchase, it is an indication that they are expecting the stock to rise.

Insider selling, on the other hand, can be for a variety of reasons and doesn’t necessarily mean that the seller is expecting the stock to decline.

Important transaction codes

Investors prefer to focus on transactions that take place in the open market and are identified in Table I of Form 4. A P in field 3 stands for a purchase, a S for a sale. The transaction code C indicates the conversion of an option and the transaction code A indicates that the insider may have been forced to sell shares in order to receive compensation promised by the company when he was hired.

Buy, hold or sell Twitter?

How will Twitter develop now? Is your money safe in this stock? The answers to these questions and why you need to act now can be found in the latest analysis on Twitter shares.

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