Home » Most Recent Stories

INSIDERS CONTINUE TO SELL INTO THE RALLY

5 April 2010 by Cullen Roche 4 Comments

Insiders continue to display a remarkably low level of confidence in the stock market via the use of their own money.  The latest data on insider buying and selling shows the continuing negative trends.  For the week ending April 2nd, insiders sold $421MM while buying just $13.5MM.  Both buying and selling were down substantially from last week, but the discrepancy between the two remains equally large.

There were no notable buying trends this week:

Notable selling:

Source: FinViz

Disclosures - Unless otherwise noted, authors have no positions in any securities mentioned and readers should never consider this to be investment advice. Always consult your financial advisor before acting on any ideas. Comments Guideline - Readers who denigrate authors or other readers will be banned without warning. This site does not tolerate any sort of reader abuse. The goal of this site is to create an environment that is conducive to learning and better understanding of the monetary system and the investment world. We expect readers to behave maturely and responsibly. We welcome and encourage intense and intelligent discourse, but the site adheres to a strict 1 strike policy. While it is your right to speak freely, it is not your right to behave childishly. Above all else, please enjoy the site. It is intended to be used as an educational tool and we hope the intelligent and mature debate will further that purpose. We hope readers will make an effort to respect that goal. Comments with excessive linking or foul language will be moderated before posting.
Comments
  • TexasInvestor

    1) Does this also count stock grants and options as “buys”? The selling seems to be concentrated in large cap stocks where grants and options are the main form of compensation to executives. They choose to exercise, more often than not, under scheduled sales and diversification programs.

    2) How do these trends predict future stock prices? Is there any historical correlation between insider transactions? If there was, wouldn’t this have been arbitraged away already? It would be good to see the finviz buy/sell data correlated with stock price.

    04/05/2010 at 12:55 AM
  • asc

    Frankly, insiders have been selling for the last one year. I don’t think the usual conclusions would apply to this piece of data except that insiders have missed the rally.

    04/05/2010 at 7:54 AM
  • Buyer

    This is actually a perfect time to buy. There is great promise in stocks as the indexes go ever higher. The economy is getting better every day as evidenced by constant glowing reports by the media. Go with the tape! I’m going all in and will buy and party like it’s 1999!

    04/06/2010 at 2:05 PM
    • Michael

      LOL @ Buyer

      I’m buying the con too! Watch the sheeple run into this one. It’s funny. It’s nearly comical. I’ve missed the last 8-10% of this “rally” but then again I own outright 75 acres of good land. Which is actually a real thing I can hold. So I’m quite happy. I’ll cheer from the sidelines until its time to make a killing on the downside. :)

      04/07/2010 at 7:02 PM