CORPORATE INSIDERS STILL VOTE NO ON U.S. MARKET APPRECIATION
The relentless selling by insiders continued in the most recent week. According to data compiled by Finviz insiders sold $641MM worth of stock in the last two weeks while purchasing just $112MM worth of stock. The data on insider buying is skewed by the large purchases in PALM which accounted for over $100MM worth of purchases. The buying and selling are slight improvements over last weeks data, but still represent an environment in which corporate insiders are hesitant to bet on the future price appreciation of their own stock.
As we’ve mentioned previously, insiders sell stock for a varying number of reasons, but generally only purchase stock for one reason – they believe the stock will rise in the future. As of now, it’s safe to say that insiders aren’t confident enough to put their personal fortunes behind their own firms – a trend we’re also seeing in terms of corporate buybacks. This has to make one wonder just how strong the recovery is in terms of corporate earnings. While the stimulus based recovery may appear strong on the surface, the long-term sustainability is certainly being questioned by those on the inside….
Insider buying:
Insider selling:
Source: Finviz, insidercow.com
