Insiders Head For the Hills

[Josh4580]

http://www.zerohedge.com/article/insider-selling-outpaces-buying-over-650-1-past-week

 

http://www.zerohedge.com/article/insider-selling-outpaces-buying-over-290-1-past-week

 

Any opinions on this?  Looks like the smart money is heading for the exits.

[Packer16]

How is the data when you look at 3, 6 months or 1 year of weeks.  With such a short window it is difficult to draw any conclusions.  Like 2 weeks of stock price movements.

 

Packer

[Josh4580]

Nov-08 to June-10 Insider Buying chart (4 wk average)

 

http://pragcap.com/insider-buying-falls-on-the-week

 

Im trying to find longer term charts on this and up to date ones.

 

Does anyone subscribe to an insider trading service which gives you this long term data?

[Smazz]

Remember, when Prem & Co were buying the most, the company still went through years of pain before the fruits.

It is an indicator, not always spot on and not always timely.

In alot of cases (as per insider buys) its probably alot easier (on the heart and nerves) if you were ACTUALLY the insider.

[Uccmal]

So much of what you are looking at is program trading.  Gates, Ballmer, Allen and other MSFT insiders sell shares continuously as part of diversification programs.  I am thinking that insiders at Dell, and many of the other stock rewards companies have the same programs.  So what your charts are really telling you is that there was a dearth of insider buying for a couple of weeks. 

 

This could mean that many insiders already got cheap shares between May and August and are feeling a little tapped out. 

 

The only thing I could draw from those charts is that LTd Brand is in trouble. 

 

As per Peter Lynch "insiders sell for many reasons but they only buy for one reason - they 'think' the stock is cheap".  The operative word is "think".  I bought a company once where the president was buying stock up to the day before a total bankruptsy (????).  Not all insiders are smart just like not all stock buy backs are good ideas.  Insiders at Potash Corp. were buying two summers ago when the stock was $200.  It hasn't been near that value since so alot of the insiders are underwater, hence the dire need to be taken over. 

 

So, I figure the data set is meaningless. 

[Partner24]

So, I figure the data set is meaningless. 

 

Uccmal, I agree with that statement, unless the company is somewhat difficult to understand and the indisers are selling "everything they can".

 

Cheers!

[nomore]

ZH is highlighting the list shown by Bloomberg weekly.

 

Perhaps a focus on the names in the sale by insiders would help. The top 3 names shown in the second ZH posting ( http://www.zerohedge.com/article/insider-selling-outpaces-buying-over-290-1-past-week ) where insiders are selling aggressively are Heinz, Google and Starbucks.

 

I would then have a quick browse thru these comapnies using finviz.com website.

 

Heinz: http://www.finviz.com/quote.ashx?t=HNZ&b=2

Google: http://www.finviz.com/quote.ashx?t=GOOG&b=2

Starbucks: http://www.finviz.com/quote.ashx?t=SBUX&b=2

 

What is nice with finviz website is at the bottom, one can 'see' the recent insider movements.

[nomore]

Latest one.. http://www.zerohedge.com/article/insider-selling-buying-surpasses-1400-1

 

Top insider sale was Oracle. CEO disposing: http://www.finviz.com/insidertrading.ashx?oc=901999&tc=7

 

Next was Tiffany. http://www.finviz.com/insidertrading.ashx?oc=928264&tc=7

 

Next Medco:

http://www.finviz.com/insidertrading.ashx?oc=1257287&tc=7

http://www.finviz.com/insidertrading.ashx?oc=1387813&tc=7

(both option exercise and sale)

 

And then Amazon, where the biggest chunk came from Senior VP who does the option exercise and sale. http://www.finviz.com/insidertrading.ashx?oc=1193122&tc=7

 

 

link to bloomberg: http://www.bloomberg.com/news/2010-09-27/weekly-insider-buying-and-selling-by-s-p-500-companies.html