Cisco CEO John Chambers sells 2.2 million shares of his Cisco stock 5 days after announcing Cisco was back to record profits

The day after the Saints won Super Bowl XLIV, John Chambers cashed in 2.2 million of his Cisco shares.

During Cisco's F2Q10 earnings call last week, Cisco CEO John Chambers bragged:

"We're back to record profits."

The next day I blogged about Cisco's F2Q10 accounts receivable issue:

"Year over year (YOY), Cisco's accounts receivable soared by $1.344 billion, an increase that was a whopping $618 million more than Cisco's net sales increase, which was just a mere $726 million."

Fast-forward another 4 days and John Chambers sells 43% of his Cisco stock:

How did I arrive at the figure of 43%? Well, I used the share amounts in Column 5 - Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) that were Directly owned by John Chambers (Column 6): Source: U.S. Securities and Exchange Commission Related story: Insider Buying and Selling Trends Remain Negative

"Insiders sold a whopping $815.7MM while buying just 15.6MM for the week ending February 12th."

John Chambers sold the 2nd largest number of insider shares, only Bill Gates sold more. The difference between the insider stock sales of John Chambers and Bill Gates? View insider stock selling chart Well, Chambers sold a whopping 43% of his stock and Gates only sold 1% of his stock!


Why do you think John Chambers sold 43% of his Cisco stock just a mere 5 days after announcing Cisco was back to record profits?

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