The negative trends in insider buying and selling continued this week as insiders sold a total of $896mm in stock and purchased just $6.3mm. Both were up from last week’s readings of $824MM in selling and the annual low in buying of $2.1MM. The 4 week trailing average of purchases remains near its recent lows.
As we’ve previously mentioned, this is a vote of no confidence in the sustainability of the long-term recovery as insiders simply refuse to use their own dollars to buy into this rally.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.