THE NEGATIVE TREND IN INSIDER SELLING WORSENS
15 September 2009 by TPC
7 Comments
For the latest two week period ending yesterday, insiders purchased just $4.6MM in stock while selling an astounding $471MM in stock. That is a $217MM jump over last week’s reading of $254MM. The trend in insider selling has been negative for quite some time, but even more alarming is the total lack of insider buying. Insiders sell for a number of varying reasons, but it remains confounding that the equity markets can be so convinced of an economic rebound while insiders give a resounding vote of no confidence in their own companies via purchases of their own shares. Perhaps the lack of organic growth via revenue growth has insiders less than convinced of the economic rebound.
More on this topic
(What's this?)
What Corporate Insiders Are Telling Us
(Investment U, 9/28/09)
Insider trading is more bearish.
(Emerging Index, 9/13/09)
What Corporate Insiders Are Telling Us
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Insider Selling Raises Red Flags
(FreundInvesting.com: Stock Marke..., 9/9/09)
May be managers are selling their shares in order to buy into the stock market and get diversity?
Yeah, If I were Robert Toll, I’d definitely want to diversify …
TPC,
Have all other genuine recoveries been preceded/accompanied by large insider buying?
Gray,
I don’t have that data handy, but I can tell you that it is extremely odd to see this sort of low insider buying when a recovery seems to be so baked into the cake.
Maybe this is contrarian. Don Coxe says that in the mining sector, insider buying has always been a contrarian signal.
This big ‘rally’ has the P/E zooming up.
However, only the P (price) is increasing, NOT the Earnings…
The guys that know why E is flat to down may see this ‘rally’ as pure speculation, or, at best, wishful thinking…?
oops i just pooped in my pants
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