Notable Insider Selling at Applied Materials Inc. (AMAT) and Costco Wholesale (COST), Plus Insider Moves at 3 Other Companies

CEO of Strong Performing Chip-Gear Maker Offloads Sizeable Block of Shares

The higher Applied Materials Inc. (NASDAQ:AMAT)’s share price goes, the more insider selling emerges at the company. While this does not necessarily imply that the company is anticipated to experience serious troubles going forward, the increasing volume of insider selling may suggest an exit point for longer-term shareholders. The latest insider selling comes from President and CEO Gary E. Dickerson, who discarded 229,935 shares on Friday at prices varying from $29.70 to $29.74 per share. Following the sizeable insider sale, Mr. Dickerson currently holds an ownership stake of 1.56 million shares.

Although the volume of insider selling at the chip-gear maker keeps rising, analysts at Pacific Crest recently said that there is more upside for the company ahead. Pacific Crest analysts increased their price target on Applied Materials Inc. (NASDAQ:AMAT) to $35 from $33 in late-September and reiterated their ‘Overweight’ rating on the stock, saying that the chip-equipment firm could gain market share and expand its reach as its product pipeline continues to expand. “Applied Materials has a strong pipeline of new products, so we think there is meaningful opportunity for additional market expansion and share gains,” said Pacific Crest analysts in a note. The shares of Applied Materials are 53% in the green thus far in 2016. Drew Cupps’ Cupps Capital Management reported ownership of approximately 87,000 shares in Applied Materials Inc. (NASDAQ:AMAT) through the current round of 13F filings (for the September quarter).

Co-Founder of Well-Known Retailer Sells Shares

Last but not least, one member of Costco Wholesale Corporation (NASDAQ:COST)’s Board offloaded a voluminous block of shares last week. James D. Sinegal, a co-founder and former CEO of Costco for 23 years, liquidated 20,114 shares on Friday at prices that ranged from $148.83 and $149.34 per share. After the recent sale, Mr. Sinegal currently holds a direct ownership stake of 768,136 shares.

The world’s second-largest retailer, known for its membership-based business model, has been somewhat disturbed by the switch in its exclusive credit card brand. Costco Wholesale Corporation (NASDAQ:COST) accepted only American Express Company (NYSE:AXP) cards for years, but the top retailer ended its relationship with AmEx last year and inked new deals with Visa Inc. (NYSE:V) (which serves as its exclusive credit card brand) and Citigroup Inc. (NYSE:C) (which serves as its partner in issuing co-branded Costco Visa cards). The retailer recently said that around 85% of the accounts shifted from American Express to Visa were already activated. Costco shares are 6% in the red this year. Ken Fisher’s Fisher Asset Management owns 3,276 shares of Costco Wholesale Corporation (NASDAQ:COST) as of September 30.

Disclosure: None