Insiders of publicly traded companies in the usa are cashing in on the stock market boom after the election. According to VerityData, in the fourth quarter, the ratio of insider sellers to buyers among companies in the s&p 500 index was 23.7 to 1, the highest level since the usa first mandated numerical disclosure of insider trading in 2004.

So far, the highest recorded ratio was 23.6 to 1 in the second quarter of 2021. In contrast, the average level since 2004 has been slightly below 12 to 1. These data include trades executed under pre-planned 10b5-1 trading plans.

Ben Silverman, research director at VerityData, stated that there are three main reasons for the increase in stock sales in the usa after the election.

First, executives are constrained by trading restrictions before the company's earnings reports are released. The approach of the election coincides with the start of most companies announcing their third-quarter results, leading to a significant increase in stock sales as trading windows open.

Second, the market performance has pushed major usa index stocks to record highs, and many executives wish to lock in profits before any short-term fluctuations. Moreover, many 10b5-1 trading plans are price-triggered, meaning executives set levels at which they sell stocks.

Finally, Silverman pointed out that the outcome of the election may also stimulate executives to sell stocks.

According to VerityData, executives at the private education company grand canyon education sold a total of $2.3 million worth of stocks in the fourth quarter. More than $1.3 million of this amount came from a sale by chief executive officer Brian Mueller on November 12. The stock price of grand canyon education rose by 14.6% on November 6, after the election, and has increased by 13.2% so far this quarter, expected to grow for the sixth consecutive quarter, marking its best consecutive growth record since the 2008 IPO.

Since early November, Reid Hoffman's Greylock Partners has sold Aurora Innovation stocks worth 80.6 million dollars. The latter produces software for self-driving cars and is seen as a beneficiary of President Trump's policies surrounding autonomous vehicles. Since Trump's election victory, the stock price of Aurora Innovation has increased by more than 20%.

Since early November last year, Palantir's CEO Alexander Karp has sold company stock worth 1.05 billion dollars through a 10b5-1 trading plan. Silverman noted that trading plans established under this regulation must have a 90-day cooling-off period between the plan's adoption and the first trade, so these plans must have been formulated at least in August.

On November 12, Daniel D 'Aniello, honorary director of private equity giant Carlyle Group, sold company stocks worth 25.5 million dollars. Transaction documents indicate that these stocks were held in trust. According to VerityData, prior to Carlyle's stock price decline, D'Aniello sold company stocks at 48.40 dollars per share in August and November 2021, the stock price fell to 22.70 dollars in October 2022.

According to the 10b5-1 trading plan approved on August 12, two Tesla directors exercised stock options worth over 60 million dollars: Kathleen Wilson-Thompson sold company stocks worth 34.6 million dollars on November 11. Robyn Denholm sold stocks worth 35.3 million dollars last Friday, part of a trading plan she adopted in July, aimed at clearing options expiring in 2025.

Insiders of Trump Media (TMTG) sold stocks worth 16.3 million dollars within days after the election: according to SEC filings, Chief Financial Officer Phillip Juhan sold 11.9 million dollars in two transactions on November 8 and November 11. The company's director Eric Swider sold stocks worth 3.8 million dollars on November 8.

Nucor's CEO Leon Topalian sold 1.9 million dollars in stocks the day after the election at an average price of 169.11 dollars. The company's stock rebounded after the election voting ended, rising 16% on that day to close at 167.74 dollars.

Insiders of industrial supply company Fastenal have sold about 22.3 million dollars in stocks so far this quarter, including Chief Financial Officer Holden Lewis who sold 3.4 million dollars on November 7, and CEO Daniel Florness who sold 2.7 million dollars on November 11.

Editor/rice