J. Kent Walker, SVP and Global Affairs Clo at Alphabet (NASDAQ: GOOG), made a large buy and sell of the company’s stock on September 30, according to a new SEC filing.
What happened: A Form 4 filed by the United States Securities and Exchange Commission reports that on September 30, J. Kent Walker bought 2,497 Alphabet shares for $ 0. They then sold their shares in successive open market transactions at prices ranging from ($ 0.00) to $ 2,700 to raise a total of $ 6,741,917 through the sale.
Following the transaction, Walker still owns 2,627 shares of the company, valued at $ 7,036,393.
Alphabet the shares are trading down 1.86% to $ 2,678.49 as of this writing on Monday morning.
The importance of insider trading
Insider trading should not be used primarily in making an investment decision, however, it can be an important factor for an investor to consider.
In legal terms, an “insider” refers to any shareholder who owns at least 10% of a company. This can include senior executives and large hedge funds. These insiders are required to notify the public of their transactions via a Form 4, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, it indicates that they expect the stock to rise.
Insider selling, on the other hand, can be done for a variety of reasons and doesn’t necessarily mean the seller thinks the stock is going to go down.
Important transaction codes
Investors prefer to focus on transactions that take place in the open market, shown in Table I of Form 4 filing. A P in box 3 indicates a purchase, while S indicates a sale. Transaction code VS 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 that was promised to him when he was hired by the company.
Check out Alphabet’s full list of Insider Trades.