CBS Chief Executive Leslie Moonves sold $22.1 million of his company stock last week, prompting the question of whether the head man felt the stock had topped out, Deadline.com reports. But that’s not the case, according to a representative for the network, the report notes.
The story reports, "According to an SEC filing, [last] week Moonves acquired 450,000 shares from options at $23.19 a share (or $10.4M), and sold 675,000 for prices ranging from $49.02 to $49.51 a share (for $22.1M)."
The sale was part of Moonves’ estate plan, called a 10b51, that makes stock purchases and sales that are automatically set via the plan, the piece reports.
“No matter what motivated the sale, that’s a tidy profit with CBS — which closed [July 5] at $50.06 — hovering around its all time high (measured since 2006 when it was spun off from Viacom),” Deadline reports. “But many prominent execs use automatic triggers for their estate trading to avoid sending an unintended signal to investors who keep an eagle eye on insider trades to see when the people who know a company best believe that the stock price is about to change its trajectory.”