Whenever a senior-level executive at a publicly traded company starts selling their company stock holdings, Wall Street types perk their ears up — why would an executive sell shares of his own company’s stock? Does this person know something the rest of us don’t? Is the company going to tank soon? Is he taking a job elsewhere? Or does he just need some extra cash to buy a new yacht?
Keep all of this in mind as you read the following: GameStop director Leonard Riggio has just sold 2.3 million shares of stock for about $60 million. Sure enough, some on Wall Street view this as an inauspicious sign for the game retailer’s prospects. Yet, games industry mouthpiece and Wedbush analyst Michael Pachter says not to fret. While he can’t explain Riggio’s huge dump of stock, Pachter sees smooth sailing, in the form of strong sales and profits, for GameStop.
While all of this makes for interesting speculation, the world at large isn’t taking much notice of Riggio’s sale. GameStop’s stock movements were fairly boring yesterday, closing a mere four tenths of a percentage point below last week’s price.