Update on insider activity from Pragcap — selling still far exceeds buying, confirming my thoughts on Feb. 20 that trends haven’t changed. – Ilene
INSIDER SELLING HITS NEW 2010 HIGH
Courtesy of The Pragmatic Capitalist
The recent uptick in stocks has not been met with much enthusiasm by corporate insiders. In fact, pessimism rules the day in the land of insider buying and
Of course, insiders sell for numerous reasons so it’s foolish to look at insider selling alone, however, the low level of buying tells the real story here. Insiders simply don’t trust the long-term viability of the equity rally based on the condition of their internal operations. Perhaps most alarming in this data is the fact that it is not solely a problem in the United States. As we noted last week, the problem is pervasive in China as well where insider buying and selling trends remain negative. Clearly, Main Street investors aren’t the only ones aware of the government induced rally in stocks. The stimulus based recovery in China is apparently causing some concern in the corner offices in Hong Kong as well.
There was no notable buying this week, however, there were some interesting trends in selling. Sales across the consumer discretionary space we particularly heavy. Selling was very heavy in Whole Foods (WFMI) where insiders clearly desire to take profits following the 25%+ rally in recent weeks. Other notable sales included sizable selling by the CFO’s of TJX and VF Corp. As we’ve previously mentioned, sales by CFO’s are always intriguing because no insider knows the company finances like the CFO. All notable buying and selling is attached:
Notable selling:
Source: FinViz
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For updated Finviz data, go here for a list of recent buys and sells.
