PragCap blog has a table today on the latest insider selling as well as how insider buying has been performing, from October of last year.
Just the other day, Time also put up another article on the noticeable selling of corporate executives.
The last time insider selling was as high as it is now was in the period from late 2006 to late 2007. It was right after that insider-selling surge that the stock market began its long painful decline, says Charles Biderman, CEO of TrimTabs, an independent institutional research firm.
Biderman believes that insider trades shoot higher when there’s a disconnect between broad market opinions and what business executives feel in their gut. “When [insiders think] things are going better than most people think, they buy stock,” he says. “When things are going worse than people think, they sell.”
The same article also argues for profit-taking after many of these insiders have lost money from their share-based compensation after the market crashed last year. It shouldn’t be wrong to think that many still haven’t recovered from that.
Well, it’s probably both. They want to take profits after the quick run up not only because there are profits to take but also because expectations of an upcoming correction are getting stronger.