insider selling signalling a stock market top?

bronco2078

Insider selling has spiked way up


sellers outnumber buyers just a little

Presumably people that qualify as insiders know something about their own business going forward. If things looked rosy would the numbers be that skewed?

It seems a stretch to say that this level of selling can be explained by just tax issues and sequester fears.

jmski52

I think that obamacare and retirements may have something to do with the divestment patterns.

tneig

Big high, big crash. Right after the big boys take theirs.

Yukoncornelius1

My sister and her husband just retired last year and cashed out all of their retirement accounts. They came to this decision jointly with their tax accountant and based it on 4 more years of obama even though they will pay a large amount of income tax. I guess there are people out there (myself included) who think that obama will try and raise taxes on most people who make an income or who have assets.

Baley

There are many potential reasons to sell stock or any financial asset, including a piece of metal: the infinity of things you can spend the money on. (Food and rent and power, kid's college and vacations, and beach cottages and motor yachts, to name but a few)

But there is really only one reason to buy a stock or other investment such as precious metals: because you think it will go up relative to the alternative investments

For the most part, corporate insiders are heavily overweighted in the stock of the company they work or have worked for. Oftentimes, they sell a portion of their holdings for simple diversification purposes, sometimes even if they still believe the stock is a good investment.

I tend to agree that if someone sells their entire stake in something, they probably believe that it will decline in relative value, in which belief they of course can be right or wrong in certain timeframes.

bronco2078

I thought it was interesting because the insider sellers dollar value is 62 times the insider buying dollar value. I didn't mean to imply the number of sellers was larger than the number of buyers.

It seems to show a flow out of stocks by insiders . Week over week the flow of dollars out is increasing since the first of the year at a pretty good clip.


Are insider shareholders "smart money" ? or are they too biased with regards to their own company?

jdimmick

I actually see money flowing out of PM's (gold) and going to real estate & Stocks at a rapid clip. At least the people I come in contact with.

we still locally have a strong demand for silver , many of these see this as a buying opp. (I hope there right, although I have my doubts) Many of them still think 40-50 is right around the corner

jim

derryb

Keep in mind that most of this stock was not bought with the insiders' money. It was a form of payment to the employee. All the employee is doing is turning it into cash, hopefully at the right time.

ebaytrader

Insiders buy for 1 reason - because they believe the stock is going to go up in value.


Insider selling can mean very little. They may be selling to raise $$ to send junior to Princeton, to pay cash for a new Benz, to balance their portfolio, or for tax considerations, etc.

mash

<< <i>Insiders buy for 1 reason - because they believe the stock is going to go up in value.


Insider selling can mean very little. They may be selling to raise $$ to send junior to Princeton, to pay cash for a new Benz, to balance their portfolio, or for tax considerations, etc. >>



Correct!
Remember, they get paid in stock