Insiders are Heading for the Exits?
From Wealth Daily:
ver the last six months, corporate insiders sold over 120 million shares, while they bought just 38,000 (per CNBC).
That's 3,177 times more sells than buys.
Insider sales hit a fresh high just last week, when 8,279x as much stock was sold as bought.
The chart below tells the story from a long-term perspective.
The top section shows the price of the S&P 500 index.
The middle graph shows a "score" representing the ratio of insiders buying to selling; a high score indicates insider buying, and a low score means insiders are selling.
The bottom graph shows net volume ($ value of transactions, buys minus sales)...
Data by InsiderScore.com, via SentimenTrader.
Insider selling is useful as a market indicator because it gives us a gauge on sentiment among top business execs.
When they're bullish on the economy and their company's prospects, they buy. And vice versa.
With that in mind, a few things stand out here...