High-ranking executives at Eli Lilly and Company (LLY) sold off nearly $6.5 million of the company's stock in the first part of February of this year. Their actions are more peculiar when you consider that quarterly dividends would have been paid on the shares for those owners of record on February 13, 2008, but they had already sold by then, according to shareholder disclosures.
It also seems odd that Lilly execs would unload such a sizeable amount of shares near the company's 52-week low of $49.09, which occurred 11/21/07, as all of their shares were sold in the mid-$51 range. (The 52-week high was $61.00 on 04/20/07.)
Do they know something that the general public doesn't, or are there valid explanations for the sales? Could the shares be headed even lower?
Couple that with the fact that these sales come on the coattails of a large sell-off by The Lilly Endowment of $20.8 million of LLY shares in September 2007, and you have to scratch your head a little. While the Endowment explained the sale as their way of better diversifying their portfolio, only time will tell if there may have been other reasons for everyone "in the know" to be selling off shares of the company.
Stay tuned.
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