As I reported last month, January saw relatively limited insider trading in the wake of some year-end net profit-taking in December. So, it was encouraging to see the buyers return during February. Nevertheless, weekly net insider trading transactions (the number of individual buyers minus sellers) still finished February quite negatively, as a lot of insiders appeared to be selling into a resurgent market. Is it indicating some doubt about the sustainability of market strength? Let’s dig a bit deeper into the numbers.
Rather than look at the total dollars traded—which typically runs strongly to the sell side—at Sabrient we prefer to add up the number of unique insider buyers during the week minus the number of insider sellers, as reported to the SEC on Form 4 – open market transactions. In essence, we look at each buyer or seller as casting a “vote” on their company stock, which we have found can be insightful. Read more…
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After selling into year-end market strength to close out the year, net weekly net insider trading transactions (the number of individual buyers minus sellers) has finished January on a slightly positive note, as many insiders appear to have taken advantage of the market weakness to increase their net holdings.
One of the data items that Sabrient tracks is Net Insider Transactions. Rather than look at the total dollars traded—which continues to run strongly to the sell side—we prefer to add up the number of unique insider purchasers during the week minus the number of insider sellers, as reported to the SEC on Form 4 – open market transactions. In essence, we look at each buyer or seller as casting a “vote” on their company stock, which we have found can be quite meaningful. Read more…
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Last month, it appeared that net insider trading transactions (the number of individual buyers minus sellers) was breaking out to the upside. It was certainly acting as a leading indicator for the end-of-year rally. Updating this for the week ending December 31, it appears that insiders have been looking to sell into market strength. Is this an indication that insiders are losing confidence in their company stock to make much more upside from these levels? Read more…
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Last month, I posted that net insider trading transactions had turned positive for the first time since May. Updating this for the week ending November 27, it appears that optimistic insiders again outnumber pessimistic ones.
Sabrient’s research team compiles a wide variety of useful data for internal reference and for use within our quantitative models. One of the things that we track is Net Insider Transactions. We simply add up the number of unique insider purchases during the week minus the number of insider sales, as reported to the SEC on Form 4 – open market transactions. Read more…
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Sabrient’s research team posts a wide variety of useful data for internal reference, and much of it is used within our quantitative models and client deliverables. One of the things that we track is Net Insider Transactions.
It appears that for the first time since late May, the market has seen positive net Insider Buying, as of October 30. (I tweeted about this last week.) We are simply adding up the number of unique insider purchases during the week minus the number of insider sales, as reported to the SEC on Form 4 – open market transactions. Read more…
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