5:32 EST Update: RIM’s Global Corporate Communications Manager Nick Manning contacted Cantech Letter to clarify the nature of the trading activity on Research in Motion Monday:
“Some of Thorsten’s Restricted Share Units (RSUs) vested on September 19 and September 28. Consistent with the process for any RSUs held by the trustee for RIM’s RSU Plan, when Thorsten’s RSUs vested the trustee automatically sold shares in an effort to cover the tax obligations relating to the RSUs that vested. The same applies to Robin Bienfait, Brian Bidulka and Mike Lazaridis. On September 20 and October 1, the first trading days after the vesting of their RSUs, the trustee automatically sold shares for the same reason.”
Here’s our original article from this morning:
Last week, the street was surprised when Research in Motion’s Q2, 2013 numbers weren’t nearly as bad as expected.
RIM shares leapt as much as 23% in the after-market last Thursday after its Q2 filing showed the BlackBerry-maker lost $235 million, or $0.45 cents per share on revenue of $2.9 billion, was up 2% from the company’s $2.8 billion topline in Q1. The numbers bested the street’s consensus that RIM would lose $.54 cents a share on revenue of $2.5-billion.
Shares pulled back from Thursday’s post-market highs, but have enjoyed a solid week, closing as high as $8.15 Tuesday.
The Monday following the Q2 numbers, however, several Research in Motion insiders were selling. On October 1st CEO Thorsten Heins sold 3628 shares at $7.60. He was joined by CIO Robin Bienfait, who sold 2405 at $7.71, CFO Brian Bidulka, who sold 3,628 at $7.60, and RIM founder Mike Lazaridis, who sold 17537 at $7.60.
One common reason for insider selling is to cover the income tax on shares given as part of a pay package.
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RIM, which expects its much anticipated BlackBerry 10 devices will be available early in 2013, ended the quarter with cash, cash equivalents, short-term and long-term investments of $2.3 billion, up from $2.2 billion at the end of the previous quarter.
At press time, shares of Research in Motion on the TSX were up 1.1% to $8.06.