IS this him trying to build confidence in DXC stock? Yeah, I don't see this working...
DXC Technology Co (NYSE:DXC) CEO John M. Lawrie acquired 3,300 shares of the stock in a transaction dated Friday, August 2nd. The stock was acquired at an average cost of $53.28 per share, with a total value of $175,824.00.
https://sundanceherald.com/2019/08/05/dxc-technology-co-nysedxc-ceo-buys-175824-00-in-stock.html
In the other thread about this on here (from the first of four monthly buys) I pointed out this was done under a 10b5-1 trade.
Its perfectly legal, this is how insiders are able to execute buys.
Here's the form with the SEC:
https://www.sec.gov/Archives/edgar/data/1688568/000168856819000068/ml10b5-1.htm
However as @10oT0k4r-tly points out, this happened at the same time as his pre-programmed automated sale of more shares than he bought. The sale is part of the same annual pattern Mikey has run since joining CSC and again is a way of offloading his annual award of shares without it being considered insider trading. He sells the previous year's award over the next 12 months in equal chunks at set intervals to not be accused of insider trading or scaring the market. Perfectly normal.
Two things though:
1) The consistent sale of his shares every year says what about his confidence in the business? I've said this many times, if he is so confident, why not have a significant holding on the table? Why does nobody ever point this out?
2) Mikey has never ever bought CSC/DXC shares with his own money before. This combined with the greater number sold at the same time as this purchase is a clear indicator that he is trying to show "confidence" to the market. The story of him making 4 x monthly buys is reported in the financial press and will be picked up on. Again, $1 million over four months is chicken feed to Mikey - he could afford to have these go down the toilet and still probably have several hundred million in the bank. He joined CSC FY13 and hasn't earned less than about $40 million a year for 7 years, sometimes a lot more than 40 too, especially with the sale of CSC's NPS where he got a massive shareholder payout on top.
As with all attempts to small scale manipulate stock price, its done little to change the price though. Both continuing revenue falls and systemic problems with the stock market caused by the US-China trade war massively offset what his dabbling could ever achieve.
I get that he has to talk the share price up a steep hill, in the rain, with mud sliding down, but I don't think 3000 shares is anything to worry about. Its no more than the annual trading plan expects and I am surprised it wasn't some bot doing automatic trading.
Mike dumped 52,000 shares in June and Jo dumped 48,000. So I wouldn't worry about them picking up 3000 as its no more than is average on the trading plan and could have been organised by an automatic trading bot that was given a nudge to go against their declining share price and sent out a quick message for the analyst call on Thursday; you know, to let them think 3000 means more than a scratch on the yacht.
Insider trading is the trading of a company's stocks or other securities by individuals with access to confidential or non-public information about the company. ... Federal law defines an “insider” as a company's officers, directors, or someone in control of at least 10% of a company's equity securities.
Yep agree - it's his / our his employees money he is burning through, probably too late now to save the company and best thing for DXC board is to reshape the company and axe the CEO
Whatever it is, he's up to no good and it smells like disguised insider trading to me !!!
Slowly building up his portfolio over and above the freebie stocks he already gets from DXC. He wouldn't be investing his own money unless he knew for certain that pretty soon the stock would go up for some reason most likely of his own making.