Monster insider trading alert for Google stock

As the ongoing rally continues to push Alphabet stock (NASDAQ: GOOG) to new all-time highs, GOOG stock is suffering the same fate when it comes to insider trading. This practice, popular among senior executives at Magnificent Seven companies, underscores the dynamism of the stock market.

On May 15, Alphabet (formerly known as Google) CEO Sundar Pichai sold 22,500 GOOG shares at an average price of $173.22, for a total profit of nearly $3.9 million.

Given a trend that strongly favors insider selling over buying in 2024, Pichai’s sale adds to the 66 previous insider sales just this year with no insider buying recorded.

This trade brings Pichai’s total sales of GOOG stock to over $27 million in 2024 alone, leading investors to question how much the CEO believes in his own company.

Suspicious timing of the trade

The timing also casts doubt on Pichai’s trading, which occurred shortly after the I/O developer conference on May 14.

At the I/O developer conference, Google unveiled its latest AI advances and emphasized its focus on competing with OpenAI, Microsoft (NASDAQ: MSFT) and Meta (NASDAQ: META). Key announcements included AI upgrades for Search, Android and Workspace apps. Google wants to integrate advanced AI models from Google DeepMind across its ecosystem.

Practical improvements for the user were also revealed, such as improvements to the Gemini AI service for better interactions with virtual assistants on Android devices. Google also introduced “Project Astra,” an augmented reality platform for AI-driven vision and speech.

GOOG stock has been steadily rising

As of the last close on May 17, GOOG shares were trading at $177.29, having gained 1.06% in the last trading session. Interestingly, GOOG shares are up 3.86% since the I/O developer conference.

Zooming out, GOOG stock posted an impressive 27.03% gain on the YTD chart.

It might be hard to tell whether Pishai’s trades were planned in advance to capitalize on the gains from the new announcements or whether the timing was just right.

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