Insider selling to buying is at a new high as public company insiders are locking in profits from the recent market rally. Insider selling is currently more than 33 times the value being bought. At the same time the S&P is up almost 50% from the March 9th lows and trades at a trailing P/E of 18.5. It's interesting that insider buying has been weak since April as insiders don't seem to have jumped on board the rising market. This bearish signal sure doesn't add any strength to whatever foundation the market rally may be built on.
As mentioned in an earlier article, there may be some volatile periods coming up in the markets. Insiders aren't demonstrating the kind of confidence in their companies' prospects that the rest of the market is; this may be a sign of the volatile periods ahead as the market reevaluates its views on future earnings.
If you find value in this market then buy it. But for those that are having trouble finding value in this inflated market, there is a possibility some of the buying opportunities seen during the March lows may come around again.
Source: TrimTabs via CNBC
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