Top executives may come on TV and talk about the recovery, but as has been the case throughout this rally, they’re not putting their money where their mouth is.
The whole time, they’ve been steadily cashing out, selling their battered shares into the market.
The Pragmatic Capitalist takes a look at the latest:
In the last two weeks insiders sold over $335MM in stock vs listed insider purchases of just over $12MM. As has been the trend over the course of the last few weeks the list of insider selling has been long and the amounts have been staggering. The buy side, on the other hand, is represented by low rated, low priced stocks whose insiders rarely purchase over $500K.
One might think that with all of these “green shoots” the insiders at major U.S. corporations would begin buying up their own shares voraciously. Especially after a nice little run like we’ve seen lately. After all, with stocks still 35% off their highs and a full blown economic recovery (supposedly) on the horizon it would make nothing but sense than to buy your own shares, right?
This chart shows just how anemic daily insider buying has been, especially compared to last year