Insider Trades: Okta and Abbott See Buys, Micron Insiders Sell

Summary

Key PointsInteresting insider trades have recently hit three key stocks experiencing very different near-term performance.Insiders are purchasing shares of cybersecurity stock Okta, and healthcare giant Abbott.Meanwhile, after a historically strong run, Micron's insider selling has increased in Q2. Insiders are making moves in three stocks that have seen huge shifts in value over the recent past. This includes insiders buying shares in names that have fallen more than 30% and sales hitting one of the market’s hottest tech stocks. Here are the signals that insiders are sending to investors in Q2. As AI Fears Weigh on Okta, an Insider Steps InFirst up is Okta (NASDAQ: OKTA), a stock that has struggled considerably. Compared to its 52-week high, Okta is down almost 40%. One of the key drivers of this is fears regarding the effect that artificial intelligence (AI) will have on the cybersecurity sector. The market is running scared, driven by the idea that AI models will solve many of the problems that cybersecurity companies have built businesses on. However, there is also an argument that when put in the wrong hands, AI models increase cyber risk, potentially making these companies more important than ever. Amid Okta’s struggles, one insider is clearly displaying confidence in the business. In Q2, Director David Schellhase purchased around $267,000 worth of Okta stock, a bullish indicator. Still, investors will notice that insider sales in Q2 have considerably outweighed his purchase, at $1.2 million. However, the details here are interesting. The sales and purchases both came under predetermined 10b5-1 plans. When it comes to 10b5-1 sales, the negative signal they send is somewhat limited, as they are often simply used by insiders to gain liquidity over long periods. On the other hand, insiders tend to buy their company’s stock only if they think the price will rise. Thus, 10b5-1 plan buys are still bullish, and potentially even more so than non- 10b5-1 buys. They sig...