INSIDER BUYING & SELLING REMAINS BEARISH
by Insider Zone - February 8th, 2010 7:45 pm
INSIDER BUYING & SELLING REMAINS BEARISH
Courtesy of The Pragmatic Capitalist
After a brief respite last week, insider buying and selling trends returned to their regularly scheduled bearishness. The recent market dip has not attracted many buyers to the market as total insider buying for the latest week totaled just $10.2MM. Total selling surged to $490MM from last week’s reading of $250.1MM.
The insider selling and buying trends continue to reflect the low level of confidence that insiders have in the future performance of their own shares. This has been best reflected in the continuing weak trends in the labor markets and the lack of organic growth in corporate earnings. Without substantial improvement in labor trends and signs of sustainable earnings growth it’s likely that insiders will continue to be heavy net sellers of their own shares.
Notable buys:
Notable sales:
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Insider Buying Stages Dramatic Comeback, Nearly 4 Times Greater Than Selling In Prior Week
by Insider Zone - February 1st, 2010 10:32 am
Insider Buying Stages Dramatic Comeback, Nearly 4 Times Greater Than Selling In Prior Week
Courtesy of Tyler Durden at Zero Hedge
Correction: due to a data compilation error, the ratio of buys to sell was actually lower: 3.8x. Still, The big bulk buys pushed the ratio to a favorable buying balance. Absent the three big block buys, the balance of the buys accounted for only $10 million.
In one of the more dramatic comebacks seen in the past year, insider buying has finally surpassed insider selling, and that by a wide margin. In the prior week insiders bought $390 million worth of stock while selling just $103 million. Yet the bulk of the buying was concentrated in 3 bulk purchases: MatlinPatterson’s acquisition of $300 million worth of FlagStar Bancorp (which judging by its stock price isn’t doing all that hot to date - may be worth a second look), Orbitz Worldwide Director Paul Schorr’s purchase of $50 million in OWW stock and Intermune direct Jonathan Leff’s purchase of $30 million worth of Intermune. Aside from these transactions there were no major notable buys or sells: the largest sale was a $6 million sale of DeVry stock by 10% owner Dennis Kellner.
Data courtesy of FinViz.
| Attachment | Size |
|---|---|
| Insider Transactions 2.1 - revised.pdf | 577.86 KB |
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INSIDER BUYING DROPS TO LOWEST LEVELS IN A YEAR
by Insider Zone - January 19th, 2010 11:59 pm
INSIDER BUYING DROPS TO LOWEST LEVELS IN A YEAR
Courtesy of The Pragmatic Capitalist
As the recession on Main Street continues the negative trends in insider buying get even worse. Insider buying fell to a new low of $7.8MM on the week. Selling dropped from $318MM to $293.22MM, but remains at very high levels. I continue to believe this is a reflection of the ongoing secular bear market as corporate
Notable selling:
Notable buying:
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Insider Selling/Buying Ratio At 62.3x To Start Off 2010; Insiders Can’t Thank The Fed Enough For Inflated Stock Prices
by Insider Zone - January 11th, 2010 3:06 pm
Insider Selling/Buying Ratio At 62.3x To Start Off 2010; Insiders Can’t Thank The Fed Enough For Inflated Stock Prices
Courtesy of Tyler Durden
2010 has started off with a bang. Insiders purchased $4.5 million worth of stock (and yes, this does not include the end year transaction by such individuals as Nelson Peltz who acquired nearly 10 million shares of Legg Mason on the last day of 2009, to validate his recent board seat standstill), in the period from January 4. It should, however, comes as no surprise that in the same period selling did not moderate, and insiders offloaded $281 million in shares (yes, this accounts for the double counting of trades between various ultimately identical corporate entities, which seems to have been missed by some of our peers). Net result: an insider selling to buying of 62x to kick off 2010. And still the quants are chasing momentum ever higher. There is no way this will end in anything but tears.
Source: FinViz
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INSIDER TRADING REMAINS BEARISH AS 2010 BEGINS
by Insider Zone - January 4th, 2010 4:16 pm
INSIDER TRADING REMAINS BEARISH AS 2010 BEGINS
Courtesy of The Pragmatic Capitalist
As we turn the page on a new year the trend in insider trading remains largely the same as it was in 2009. Although the holiday week was shortened, insiders still found time to unload millions of shares in their own companies. In the last week of the year insiders sold over $222MM worth of stock while purchasing just $18.5MM worth of stock.
We believe this very bearish data is likely due to the long-term trends executives see within their own companies. Although insider trading is never a good short-term indicator it is very useful as a long-term indicator. After all, insiders rarely purchase their own shares with a short time horizon. Therefore, we believe insiders continue to refuse to invest their own money in their companies due to the negative trends they see in top line growth and job growth. In other words, they know the margin expansion story is not sustainable in the long-run and that the likelihood of another downturn in the market remains very high over the course of the next few years.
Of the few purchases the Nelson Peltz purchases continue to stand out. Although he claims not to have an activist interest in the Legg Mason, he continues to pour money into the firm and his history doesn’t tend to be that of an idle investor and board member.
Notable Buying:
Notable Selling:
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INSIDERS REMAIN SKEPTICAL OF THE RALLY
by Insider Zone - December 21st, 2009 11:02 am
INSIDERS REMAIN SKEPTICAL OF THE RALLY
Courtesy of The Pragmatic Capitalist
The latest insider trading data continues to show a very stark contrast between the
It’s difficult to read into the selling data too much as insiders sell stock for a number of different reasons, however, the low level of buying continues to represent the very weak fundamental background that insiders see at their own corporations. Although the liquidity and margin driven rally has been impressive we still lack many of the organic fundamental components (revenue expansion for instance) that would give insiders the confidence to invest their own dollars in the long-term growth of their own companies.
Among the notable purchases were the Nelson Peltz purchase of Legg Mason and some interesting insider moves at DPL. Peltz, the billionaire activist, has increased his stake in LM to 4.75% of the company and could be foreshadowing a sale at some point despite LM’s repeated statements that they won’t succumb to such activism. DPL, on the other hand, saw some much smaller purchases, but it’s always interest when the CFO and CEO of a company invest their own dollars in their companies. These are hands down the two most knowledgeable executives at any firm. This one might be worth further investigation….
Notable buys [click on tables to enlarge]:
Notable sales:
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For Week Ending December 14, Insider Selling Outpaces Buying By A Factor Of 32
by Insider Zone - December 14th, 2009 7:52 pm
For Week Ending December 14, Insider Selling Outpaces Buying By A Factor Of 32
Courtesy of Tyler Durden
While certainly a "slight" improvement from last week’s ratio of 82 sales for every buy (in dollar value), this week we see a reversion back to the recent mean of about 30x, or a 32.4x ratio of insider selling to buying, to be specific. In the last week insiders sold $332.7 million worth of stock and bought $10.2 million. The recession continues being over.
Insider Transactions December 14 -
Source: FinViz.
| Attachment | Size |
|---|---|
| Insider Transactions December 14.pdf | 635.4 KB |
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INSIDERS REMAIN DOUBTFUL OF THE RALLY
by Insider Zone - December 9th, 2009 4:51 pm
INSIDERS REMAIN DOUBTFUL OF THE RALLY
Courtesy of The Pragmatic Capitalist
Few things have been more confounding over the course of the 60% rally than the lack of insider conviction with regards to purchasing their own stocks. The latest data on insider selling and buying continues to show alarmingly low levels of buying accompanied by very high levels of selling. As we continue to see the very weak rebound in revenues and non-existent hiring it has become more and more clear why insiders lack conviction in their own shares – after all, without a rebound in hiring and organic revenue growth a sustainable economic recovery remains highly unlikely.
Yesterday’s Business Roundtable Survey confirmed much of this. Despite increased confidence over Q3 we continue to see very low confidence in future hiring and spending. Hence, the likelihood of a long and slow recovery remains very high:
“The economy is in the throes of a long transition back to health; recovery will be long, extending beyond 2010,” said Ivan G. Seidenberg, Chairman of Business Roundtable and Chairman and CEO of Verizon Communications. “The outlook of our CEOs reflects that reality: we see noticeable gains in sales and capital spending, but employment growth continues to lag.”
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Visualizing The Insider Selling Spree: Bob Toll Takes First Prize… As Does Bill Gates
by Insider Zone - December 8th, 2009 11:31 pm
Visualizing The Insider Selling Spree: Bob Toll Takes First Prize… As Does Bill Gates
Courtesy of Tyler Durden
It seems like yesterday that Bob Toll was propounding the benefits of stimulus packages for housing and the ever improving status of new home sales (solidly grounded in the same sands as Dubai is now sinking into). Yet while we at Zero Hedge have enjoyed taking repeated stabs at Mr. Toll’s seemingly endless selling of his own stock, we have not learned our lesson. Which is why we present his insider transaction in a new and original way, courtesy of Bloomberg. As the image indicates, Mr. Toll’s money is roughly 180 degrees from where his mouth is.
Yet Bob is an amateur when compared to such prominent patriots as Bill Gates and Warren Buffett, both of which have repeatedly stated their support for the good ole’ US of A. Indicatively, we present the most recent transactions by both Mr. Gates and Mr. Buffett in BRK/B shares. This insider trading pattern is comparable for most other holdings of these two truly patriotic gentlemen.
Mr Buffett:
And Mr. Gates:
We encourage readers to request the insider trading activity of their personal favorite corporate executives. We will post the 10 most entertaining ones.
Update: due to several requests, here is all the insider activity in Goldman Sachs shares. As a reminder: red means stop… and in this case, sell.
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Most Recent Insider Selling to Buying Ratio: 82:1
by Insider Zone - December 7th, 2009 9:37 am
Most Recent Insider Selling to Buying Ratio: 82:1
Courtesy of Tyler Durden at Zero Hedge
You would think that insiders would finally change their tune after almost a year of straight line gains in the market. Think again. The most recent insider trading data from finviz indicates that insider sellling outpaces buying by a ratio of 82! In the most recent data set, $11.6 million in stock was purchased by insiders, while a whopping $957 million was sold. And somehow pundits are still spinning this mass orchestrated sell into the bid by those in the know as a bull market.
| Attachment | Size |
|---|---|
| Insider Trades 12.7 finviz.pdf | 752.48 KB |
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