On the surface Blackboard stock still looks good. The stock price has inched up a couple of points since the patent controversy began and one of the analysts (Banc of America Sec) recently upgraded from neutral to buy, setting the target price to increase to $38 per share.
So, why are Blackboard insiders still dumping the stock? I called attention to the phenomenon ("follow the money") in August. Guess what? The trend hasn't abated. During the past six months Blackboard insiders have sold over 220,000 shares and purchased only 22. What do they know that we don't?
Even Forbes recently took notice ("five insider selling plays") listing Blackboard as one of the top five companies with significant insider dumping of stocks: "Executives have recently unloaded a significant amount of stock at these five companies. Insider selling hardly spells doom, but it could serve as signal for those looking to take some profits or make an outright exit from a stock.")
Hardly a sign of confidence in their own company.
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