Corporate insiders are still selling — but investors should pay close attention
Life tip: Judge a person by their actions, not their words.
Investing tip: Judge a stock by their insider action, not what analysts are shilling.
Insider buying and selling can tell investors a lot. After all, who has the most access to a company’s information?
There were two periods of mass insider buying/selling in the past few years:
- Buying during March 2020 (pandemic start).
- Selling during November 2021 (when the Fed said they would soon raise rates).
In the past six months, insider buying has fallen each month relative to the number of sellers.
Elon Musk sold nearly $23B in Tesla (NASDAQ:TSLA) stock to finance his Twitter purchase — by far the largest seller. But another CEO had a “brilliant” idea…
Workplace management software Asana’s (NYSE:ASAN) CEO took a big L last year — having bought $921M throughout 2022. The stock fell 81% last year. Brutal.
The lack of buyers is a troubling sign — especially when prices have already fallen so low. Is their crystal ball of insider information telling them that prices are going even lower?
We’ll keep a closer eye on those insiders in the coming months.