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On Friday, Mellanox announced that chairman, president and CEO Eyal Waldman and CFO Michael Gray have each adopted a stock trading plan to sell a portion of their shares of the company. They will have no discretion over the timing or price of the sale, or of the buyer.
The plans, based on Rule 10b5-1 of the Securities and Exchange Act of 1934, allow insiders to sell shares without subsequently being accused of insider trading.
Waldo 2 Holdings, in which Waldman is a general partner, may sell up to 289,969 Mellanox shares, currently worth $5.1 million, by November 2010. Gray may sell up to 77,000 shares, currently worth $1.3 million from the exercise of employee stock options by September 2010. The sales are subject to certain conditions, which the company did not disclose.
The sale of shares by Waldman and Gray at this time raises the question if they believe that the share has peaked. However, previous sales by Waldman and other Mellanox executives suggest that this is not the case. Last year, Waldman sold shares at prices both higher and lower than the current share price. A study by "Globes" of transactions by Mellanox parties at interest last year found that Waldman sold $3.7 million worth of shares compared with $337,000 worth of shares so far this year.
Mellanox fell 1.9 percent on Friday to $17.45, giving a market cap of $558 million, making it the tenth largest Israeli company traded on Wall Street, according to a study by "Globes". The share fell 1.1 percent by midday on the TASE today to NIS 65.80.
To see more of the Globes or to subscribe to the newspaper, go to http://www.globes-online.com. Copyright (c) 2009, Globes, Tel Aviv, Israel Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.
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