EB Games execs cash out
SEC docs point to stock sales this month that add up to more than $22 million.
Barron's today reported on which EB Games execs have, so far in June, cashed out significant shares of company stock. EB shares have increased in value by 140 percent over the past year, spiking more than 30 percent on news of an EB Games-GameStop merger last April.
Jeff Griffiths, EB Games' CEO, exercised options on 173,275 shares, selling them for a total of $10.9 million; John Panichello, the company's COO, exercised options on 149,571 shares, securing $9.4 million in the trades; and CFO James Smith exercised options on 43,634 shares, selling them for approximately $2.8 million.
Jonathan Moreland, director of research at InsiderInsights.com, told Barron's, "While it's not uncommon to see insiders selling shares when a stock has done well, I never like seeing insiders unwilling to hold shares long in the open market. I see it as a bit of a red flag."
Insider trades (those by a company officer, director, or owner of 10 percent or more of a class of the company's securities) must be reported to the Securities and Exchange Commission by the 10th of the month following the month of the trade. InsiderInsights.com regularly posts news of such trades.
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