Is Sirius XM’s CEO Stock Cash Out A Worry Sign for Investors?

Sirius XM Radio Inc. (NASDAQ:SIRI) CEO Mel Karmazin sold off a hefty portion of his company shares this week as the stock continued its downward spiral.

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Karmazin dumped 13.7 million shares between May 14 and May 16, according to disclosures to the U.S. Securities and Exchange Commission. Karmazin exercised his option on the shares for 43 cents per share, or a total price of $5.89 million. Karmazin then sold the same shares for $1.99 per share, netting a profit of $21.31 million in the transaction. Karmazin still holds 8.5 million shares valued at $15.56 million based on Thursday’s close of $1.83 per share. Shares closed Friday at $1.88 per share.

Liberty Media Corp. (NASDAQ:LMCA) has been attempting to gain a controlling stake in Sirius XM Radio and may make a push to acquire more shares before Sirius’ annual shareholder meeting on May 22. Previously, Liberty Media had considered acquiring 300 million more shares of the company at a price of $2.15 per share.

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