AMR executives cash out $19 million in stock sales
AMR shares closed at $31.96 the day the stock bonuses were paid. By April 23, the last day of insider selling, they had fallen to $27.78. Mark LoPresti, an analyst who tracks insider trading for Thomson Financial, said it often foreshadows a further decline in the stock price when executives, with significant knowledge of the company's operations, sell while the stock price is falling, reported the Associated Press.
Arpey exercised options for 49,363 shares and sold them immediately for $1.5 million, netting nearly
$1.1 million. Then he sold another 207,900 shares for $6.2 million. Together, the sales represented
34.2 percent of his AMR stock.
Executive vice president Daniel Garton sold 123,712 shares, or 29.7 percent of his stake, for
$3.7 million. The chief financial officer, general counsel and senior vice president sold stock for a combined $7.8 million, according to company filings.
FLTops.com monitors financial information on companies from major airlines to turboprop scheduled airlines. Members can learn more through the Search Archives page in Industry News and Analysis.
Lisa Treon
6/4/2007
Stock market analysts are questioning the recent stock sales of AMR Corporation’s top executives. Within five days of getting the bonuses in April, chief executive officer Gerard Arpey and four other top executives cashed out shares worth about $19 million. In some cases, it was one-third of their AMR stock holdings. AMR is the parent company of American Airlines.6/4/2007
AMR shares closed at $31.96 the day the stock bonuses were paid. By April 23, the last day of insider selling, they had fallen to $27.78. Mark LoPresti, an analyst who tracks insider trading for Thomson Financial, said it often foreshadows a further decline in the stock price when executives, with significant knowledge of the company's operations, sell while the stock price is falling, reported the Associated Press.
Arpey exercised options for 49,363 shares and sold them immediately for $1.5 million, netting nearly
$1.1 million. Then he sold another 207,900 shares for $6.2 million. Together, the sales represented
34.2 percent of his AMR stock.
Executive vice president Daniel Garton sold 123,712 shares, or 29.7 percent of his stake, for
$3.7 million. The chief financial officer, general counsel and senior vice president sold stock for a combined $7.8 million, according to company filings.
FLTops.com monitors financial information on companies from major airlines to turboprop scheduled airlines. Members can learn more through the Search Archives page in Industry News and Analysis.
