Paychex And 2 Other Stocks Insiders Are Selling

The Nasdaq index dropped by more than 1% on Wednesday. Investors, meanwhile, focused on some notable insider trades.

When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.

Below is a look at a few recent notable insider sales. For more, check out Benzinga's insider transactions platform.

Paychex

• The Trade: Paychex, Inc. PAYX Senior Vice President Michael Gioja sold a total of 13,744 shares at an average price of $115.30. The insider received around $1.58 million from selling those shares.
• What’s Happening: Paychex recently reported second-quarter FY23 revenue growth of 7% year-on-year to $1.19 billion, in line with the consensus.
• What Paychex Does: Paychex is a leading provider of payroll, human capital management, and insurance solutions servicing small and midsize clients primarily in the United States.

Read More: 5 Most Cheap IT Stocks You Should Think About

Dropbox

• The Trade: Dropbox, Inc. DBX President Timothy Young sold a total of 15,000 shares at an average price of $22.39. The insider received around $335.79 thousand as a result of the transaction.
• What’s Happening: Dropbox recently acquired FormSwift for $95 million in cash.
• What Dropbox Does: Dropbox is a leading provider of cloud-storage and content collaboration tools with an emphasis on individuals and SMB.

Have a look at our premarket coverage here

Yext

• The Trade: Yext, Inc. YEXT Director Brian Distelburger sold a total of 68,425 shares at an average price of $6.13. The insider received around $419.44 thousand from selling those shares.
• What’s Happening: JP Morgan recently downgraded Yelp from Neutral to Underweight and lowered the price target from $34 to $23.
• What Yext Does: Yext Inc provides a knowledge engine platform that lets businesses manage their digital knowledge in the cloud and sync it to approximately 200 services including Apple Maps, Bing, Cortana, Facebook, Google, Google Maps, Instagram, Siri and Yelp.