MU employee spouse posted this brief, and poignant comment to a Seeking Alpha article. It captures a whole lot about what has been going on with insider selling at the company:. Long-time Micron employees have seen their stock options come and go over the years, while the stock's price sunk lower and lower. The options, given to them as part of their compensation package, were never worth anything by the time they could be exercised.
These folks finally had the opportunity to turn some of their long-time compensation into actual dollars, and did so. Can you blame them? As far as the information I have seen the insiders who have sold MU have retained more than half of their holdings, which indicates that they are not expecting the stock price to drop dramatically in the near future. He has a small number of MU stock options. He sold some of them - worth something for the first time ever - in We are holding onto the rest of his options, as we believe the company is well positioned now and the stock price will continue to rise.
This was posted on January 30th to an article which appeared on that same date. Its one of the worst SA articles I've read on Micron so I've spared you the time reading it by posting the whole comment. Sharon, this is a great story. But our concern about insider sellers is not about senior engineers like your husband. It is about the directors and officers of the company whose actions with regard to insider sales signal a lot to the market. Their actions with regard to their stock and option holdings probably signal a lot to senior engineers and employees like your husband.
An individual form is not terribly useful. Downloading a bunch of them allows an examination of trends over time and gives some of the fabric and feel of the incentive stock program, and who is doing what.
As detailed in the methodology section at the end of this article, I looked at all the Form4's for the last 13 months. So what insights can be gleaned through this kind of deep dive into the data? I was curious about who has sold, and how much they've sold.
For this article I decided to ignore acquisitions or new grants entirely. But be still your quaking heart Micron stockholders and SA readers; our officers and directors have been getting plenty of new option grants, which I may detail in another article. Here is a summary on what has been sold in the past 13 months:. And that table raised the question of how much did these sellers leave on the table? And here's some data on volume of insider sales plotted against the stock price for the same period:.
Incentive compensation is broken in the USA. Micron Technology is a poster child of what is broken. For nine of the past ten years, as the lead in comment indicated, this program provided little incentive and didn't align the directors and officers with the shareholders. Again, during this "ATM phase" the program didn't align the participants with the stockholders.
After a 9 year dry spell and a 1 year rocket launch in the stock price, now is a great time to change the program or scrap it entirely. Here are some ideas:. Having them in XML on my computer makes it easier to summarize and tabulate the data. There are significant discrepancies between some of the human and machine readable forms.
They are machine readable only with a lot of rules and some data "massaging". I've had to make judgment calls on some of the data. Your mileage may vary. Now that the cumbersome bit of getting the data onto my computer and cleaned up gifts removed, xml errors parsed, etc. Here are those that occurred to me. Let me know what you'd like to see:.
I am long MU. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it other than from Seeking Alpha. I have no business relationship with any company whose stock is mentioned in this article.
It captures a whole lot about what has been going on with insider selling at the company: Sharon U Comments 3 Long-time Micron employees have seen their stock options come and go over the years, while the stock's price sunk lower and lower. Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here. The chat platform is currently undergoing maintenance.
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