Old news, but interesting none the less. Info from Bloomberg
in late March.
Ascend Insiders Sold as Stock Fell Last Month:
Insider Focus
Mar/18/97 18:34
Alameda, California, March 18 (Bloomberg) -- Ascend Communications Inc. executives
and directors sold 728,559 shares in February as the company's stock slumped amid
concern about slowing sales in the computer networking market. Among the biggest
sellers was Chief Executive and President Mory Ejabat, who sold 134,341 shares at
$60 to $70 a share for more than $8 million, according to the Washington Service, a
firm that tracks insider purchases and sales. Some of Ejabat's sales, and most of the
sales by 10 other insiders, were related to options granted as part of their
compensation. Documents filed with the Securities and Exchange Commission show
Ejabat got the right to buy some of the shares for as little as 6 cents. The sales left
Ejabat with just 26,931 Ascend shares. Analysts said the sales, made public by the
Washington Service today, may have caused Ascend shares to fall. ``People see
insider selling and say `they must know something I don't,''' said Roxane Googin,
analyst at Gruntal & Co., ``especially in an environment like this'' where share prices for
networking stocks already have been falling. Alameda, California-based Ascend
shares today fell 3 3/8 to 48 1/8 on trading of 5.8 million, more than the three-month
daily average 4.3 million. They are down 39 percent in the last two months. Shares of
Ascend and other networking companies have tumbled recently amid concern that their
surging sales may be slowing, especially overseas. Ascend also has suffered this week
amid speculation that rival Cisco Systems Inc. might soon unveil a product that
competes with Ascend's Max line of remote access controllers. The products enable
Internet service providers to connect large numbers of phone lines to their computers.
It's common for officers at technology companies to sell stock received through options
because the shares are often a large part of their compensation. Even so, some
investors get nervous when they see a spate of insider sales. ``I think people are
looking for an excuse to sell,'' said Terrie Murphy, an analyst at Smith Barney Inc. in San
Francisco. ``I imagine that's why the stock sold off. I'm not too alarmed.'' Neither an
Ascend spokeswoman nor Ejabat could immediately be reached to comment. Among
the other insider sellers were Chief Financial Officer Robert Dahl, who sold 82,374
shares at $62.11 to $65.85 a share. Options gave him the right to buy most of the
shares for $33, giving him a profit on the sales of about $2.6 million. Jeanette Symons,
vice president for engineering, sold 160,000 shares at $63.85 to $67, leaving her with
244,644 shares. Her sales weren't options-related, according to the Washington
Service. Anthony Stagno, another officer, sold 15,678 shares for about $60 a share for
stock he had the right to buy for as little as 4 cents and as much as $33. Ascend's vice
president for strategic business development, Bernie Schneider, sold 35,000 shares
for $64.50 to $65.00. He used options to buy the shares for $11.125 apiece, netting
him a profit of about $1.89 million. Michael Hendren, senior vice president for North
American sales, sold 67,292 shares at $62.25 to $66.38. Options have him the right to
buy most of those shares for $1.95, according to SEC filings. Chief Accounting Officer
Michael Johnson sold 10,624 shares at $61.49 to $65.03. Options gave him the right to
buy those shares at $1.31 and $10.50. Vice President of Engineering William Kind
sold 6,250 shares for $69.75. He exercised those options for $1 each, giving him a
profit of $4.3 million. Another officer of the company, Sanford Curtis, sold 17,000
shares for $62.63, leaving him with 89,596. Those sales weren't options-related.
Director Roger Evans sold 170,000 shares at $60 to $65.25, leaving him with 910,280
shares. Those sales also weren't options- related. Director Betsy Atkins sold 30,000
shares for $64.63 and $65.50. She bought most of the shares using options for $10.25. |
