Insider selling soared 17% for the week ending February 20th and hit a new 2010 high. Total buying also picked up, but remains near historically low levels. Total selling reached $956MM while buying totaled just $96.3MM. Insider buying has been unusually low throughout the rally as economic fundamentals remain questionable. Recent signs of recovery have done little to encourage insiders to invest their personal dollars in their own companies.
There were no notable purchases this week. On the sell side, large sales from CFO’s are also interesting. In this week’s report we saw large sales from the CFOs of Netflix and Walter’s Industries. Arguably, there is no one more familiar with corporate financial condition than the CFO so we always take notice of insider sales by CFO’s. All notable sales are attached:
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.