Corporate insiders are selling faster than usual

[marmar]

By Mark Hulbert, MarketWatch


CHAPEL HILL, N.C. (MarketWatch) — Bad news, stock-market bulls: Corporate insiders are selling their companies’ shares at an abnormally fast pace.

In fact, one measure of that selling activity shows insiders of NYSE- and AMEX-listed companies recently were selling at the fastest rate since data began being collected in the early 1970s, four decades ago.

On the theory that insiders know more about their companies’ prospects than do the rest of us, this is an ominous sign.

Corporate insiders, of course, are a company’s officers, directors and largest shareholders. They are required to file a report with the Securities and Exchange Commission more or less immediately upon buying or selling shares of their companies, and the SEC makes those reports public. ..........(more)

The complete piece is at: http://www.marketwatch.com/story/insiders-selling-at-unusually-fast-pace-2011-07-28

[cbdo2007]

1. There is only one reason for executives to buy stock, but many reasons to sell.

[Coyote_Bandit]

2. Ummmm......

Many of them acquire stock through options, performance bonuses or as part of their compensation package without purchasing it. Many of them never buy the stock.

[cbdo2007]

3. You missed the point....

there are many reasons for an executive to sell. House payment, car payment, Barmitzvah, mediterranean cruise, etc....

Regardless of how they got the stock, insider selling is a poor stock market indicator.

[marmar]

4. I think the key words here are "faster than usual" ........

..... and this is from the Wall Street Journal-owned Market Watch, not some Alex Jones conspiracy theory website.

[cbdo2007]

5. Did you even read the article??

It lists all the reasons why this study is PROBABLY INACCURATE!! hahaha

But if you think we're heading for a crash, more power to you. Thumbs up, you called it first with your doom and gloom.

[Coyote_Bandit]

6. Apparently you didn't notice

that I made no commentary regarding the sale or disposition of of the stock.

[Mist]

7. After Enron it makes sense to be nervous over such news. nt