EVP And Scientific Strategy Cso Of Exelixis Trades $1.3M In Company Stock

Peter Lamb, EVP And Scientific Strategy Cso at Exelixis EXEL, made a large buy and sell of company shares on October 15, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission states that Peter Lamb exercised options to purchase 47,500 Exelixis shares at a price of $6.21 per share for a total of $294,975 on October 15. They then sold their shares on the same day in the open market. They sold at a price of $21.92 to raise a total of $1,041,200 from the stock sale.

Following the transaction, Lamb still owns 428,345 shares of the company, worth $9,207,275.

Exelixis shares are trading down 1.49% at $21.5 at the time of this writing on Monday morning.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Transaction Codes To Focus On

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates the insider may have been forced to sell shares in order to receive compensation that had been promised upon being hired by the company.

Check Out The Full List Of Exelixis's Insider Trades.