How is this for a misleading headline?

Axon president sells stock worth $5.83M - filing

10:09 AM ** ** **Axon Enterprise, Inc. (AXON) ** By: Ahmed Farhath, SA News Editor

  • Axon president Joshua Isner disclosed in an SEC filing on Wednesday after the bell a sale of 29,699 shares of the company, worth about $5.83 million.
  • The sale of shares underlying vested restricted stock units was executed pursuant to a filed Rule 10b5-1 trading plan.
  • Over the past 3 months, there has been 5 total insider trades, with 3 open market buys and 2 seller trades.
  • The number of shares bought under 3 open market buy was 156,124, while 36,756 shares were sold under 2 seller trades.


Okay, you read the headline and the first bullet and it sounds really ominous.

Then if you move down to the second bullet you discover that this sale was according to one of those 10b5-1 trading plans where he sells the same amount each quarter automatically on a fixed date, irrespective of the stock price. Doesn’t sound very ominous any more.

And then, oops, you move down to the 3rd bullet and discover that in the past three months there have been 3 insider buys and only 2 insider sales. Wow! You will find very few companies with more insider buys than sells. Why was he scaring us with that misleading title.

Then, believe it or not, the author of the article found that the number of shares in the insider buys was vastly greater than the insider sells! More than four times as many! What was he THINKING to start an article with a headline like that???

I must point out that I didn’t check his figures. I’m just assuming that he believed his figures were correct, in which case what was he thinking to start his article sounding like this was an ominous discovery?

I’m just posting this as a warning to you to don’t read headlines and go out and sell (or buy) stocks based on them.

Saul

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To get the click. It worked, though.

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Saul, the guy who writes the headline and the guy who writes the article are often two different people. The purpose of the headline is to grab your attention such that you might be motivated enough to click on it in order to read the article, and BTW allow yourself to be exposed to the advertising that comes with the article. And there’s a hope and a prayer that one of the ads might interest you enough to click on it and maybe even buy whatever is being advertised.

It’s really no different than print media, though I agree that headlines have become increasingly misleading to the point that at times they have virtually nothing to do with the content.

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