What Has These Insiders Selling Stock Amid Market Turbulence?

East West Bancorp Inc. (NASDAQ:EWBC) saw two top executives cash out holdings this week. To begin with, Executive Vice President Douglas P. Krause offloaded 20,000 shares on Tuesday at a weighted average sale price of $43.55, remaining with 25,791 shares. The Executive VP also holds an indirect ownership stake of 27,997 shares. Furthermore, President and Chief Operating Officer Julia S. Gouw reported selling a 14,743-share block on the same day at $43.55 apiece, which was held through a retirement savings plan. After the recent sell-off, the President holds 58,971 shares.

The shares of the financial bridge between the United States and China are up by 9% in 2015, and are trading at a trailing P/E ratio of only 15.91, which seems to reflect the risks associated with the changes in China’s economy and its monetary policy. Even so, East West Bancorp has been doing great in terms of financial performance this year. Its total assets reached $31.12 billion on September 30, compared to the $28.74 billion that figure stood at on December 31, 2014. The company’s nonperforming assets decreased to $129.8 million from $132.4 million, while its total deposits grew to $26.76 billion from $24.01 billion. Ken Fisher’s Fisher Asset Management cut its exposure to East West Bancorp Inc. (NASDAQ:EWBC) by 4% during the July-to-September period, ending the quarter with 2.91 million shares.

Let’s wind up our analysis by discussing the insider selling activity at CSG Systems International Inc. (NASDAQ:CSGS). Chief Executive Officer Peter E. Kalan discarded 22,674 shares on Tuesday at a weighted average price of $35.62. Following this sizable transaction, the CEO currently owns 368,064 shares. It is not surprising that insiders are cashing out their holdings at the business support solutions provider, as its shares have advanced by more than 40% this year. The company delivered strong bottom-line growth in the third quarter, even though its revenue increased by only 1% year-over-year. CSG’s revenue increased to $187.0 million from $185.0 million, while its diluted earnings per share grew to $0.50 from $0.15. This growth is mainly attributable to CSG’s cost reduction efforts and the reduction in restructuring and reorganization costs. A high portion of CSG’s revenue is derived from three large service providers, so this high client concentration may be worrisome for some investors. The company anticipates to continue generating most of its revenue from these large clients, so one should still consider the inherent risks associated with this high concentration. A total of 22 smart money investors that we track were invested in CSG at the end of the third quarter. Renaissance Technologies, founded by billionaire mathematician Jim Simons is among the most bullish of those investors of CSG Systems International Inc. (NASDAQ:CSGS), holding 1.87 million shares as of September 30.

Disclosure: None