If Tibco’s Stock Is So Cheap, Why Was Ranadive Vivek Selling?

Jan 7, 2014
J. Webster
Comments Off on If Tibco’s Stock Is So Cheap, Why Was Ranadive Vivek Selling?

If Ranadive Vivek thinks his stock is so cheap, why did he sell 320,000 shares at $24.03 on November 5, 2013? And exercise 500,000 options at $5.99 per share on the same day.

I wanted to buy shares of Tibco, but after I saw this I started to re-think buying the stock. I get that sometimes these stock sales are already in place and scheduled, but it does seems like a lot of shares to sell if you think the stock is so cheap.

tibco_insider_sales

See the insider sales by Vivek at Yahoo Finance.

Tibco Software is an interesting company, it got chopped from $25 down to $21 after the company announced poor guidance and weaker margins, but Tibco is in right smack in the center of a few big trends: big data, mobile, and cloud software services. All of these services are what companies need and desire if they’re going to compete in a track every data point available type of economy.

And Mr. Vivek is a confident CEO who said this after the stock took a hit, “I believe this is going to be the biggest opportunity since the stock was five dollars“. Why? Because he said Tibco is focused on growth areas like mobile and the cloud-those popular trends again. And as a stockholder it doesn’t hurt to have the CEO on Twitter, you can follow along Vivek Randadive’s tweets if you like. Maybe we should ask him why he sold so many shares!

Again though, what’s interesting about a company like Tibco is it’s a part of the rising trend of big data, where you can analyze everything and anything to gain more knowledge about your business and customers. And, Tibco isn’t focused on one industry, but across all platforms in all sectors, from health care to banking to the airline industry use their software to enhance their businesses.

But do we believe Mr. Vivek Randadive about his stock being cheap or was all that just CEO bravado? Before one steps in and buy shares of Tibco it would be nice to know why Vivek was selling all those shares. That said, Tibco does have a $300 Million share repurchase program in place.

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