Here's the article & the reason we dropped when we touched that peak...
Qwest Communications International chief executive Joseph Nacchio and other top executives filed to sell more than $19.8 million in stock after the shares reached a record high.
Nacchio, who left AT&T two years ago to lead Qwest, chief financial officer Robert Woodruff, and directors Cannon Harvey and Craig Slater filed last week to sell 345,000 shares. The sales were expected to occur February 5, according to filings with the Securities and Exchange Commission, a day after Qwest shares touched a record 64.4375.
Qwest rose about 27 percent from December 31 to February 4, the day before the sales were expected to take place. Since then, the shares have fell about 15 percent.
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February 18, 1999, 1:01 p.m. PT
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said David Coleman, investment manager of Insider Watershed Group, Washington-based hedge fund that tracks insider buying and selling. "They apparently believed the stock was significantly overpriced."
Qwest executives weren't immediately available to comment.
The sales come as Qwest's revenue is quadrupling and the Denver-based company pushes to complete its nationwide network and sign up new customers. Earlier this month, Qwest reported a fourth quarter profit, reversing a year-ago loss, and announced a $1 billion contract with the U.S. Treasury Department.
Even so, Qwest insiders have sold shares 13 of the past 14 months as the stock has more than doubled, according to the Washington Service, which tracks filings with the SEC. Nacchio alone has sold 395,000 shares, not including last week's filing, the group said.
"They don't seem to want to own this stock," Coleman said. "That generally is a bearish indicator."
Nacchio, who exercised options to sell 50,000 shares last November, filed to sell 200,000 shares. Based on the stock's closing price of 57.4375 February 5, the shares were worth about $11.5 million.
Woodruff filed to sell 40,000, worth about $2.3 million, while Slater filed to sell 75,000 shares, valued at $4.31 million, and Harvey filed to sell 30,000 for about $1.72 million.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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