agree with MikeTee and one mor

17
Comment
Favorite

agree with MikeTee and one more point to add.

From a basic investment principles perspective, employees should always sell a lot of their company stock. They are fully invested in the company with their time and their work - and they are getting lots of income from it. They usually have invested or locked up shares also. So they should be selling in order to diversify, buy a house, or whatever.

Insiders Sell Stock. Their Companies Buy. It's Not a Good Sign

Corporate insiders are selling with one hand what they're buying with their other.In their personal accounts, they are selling shares of their companies at near-record rates. With their companies' cash, in contrast, they are repurchasing shares at a record rate. This schizophrenic behavior doesn't bode well for the market.Among all companies with any insider transactions so far in October, just 13% have experienced more insider buying than insider selling. That's the lowest insider buy ratio in at least a decade, according to the Seyhuns' analysis.In contrast to the insiders' stinginess in their personal portfolios is their eagerness to purchase their companies' shares with corporate cash. Rubin told Barron's that based on year-to-date buyback activity, corporations' announced buybacks have now exceeded $1 trillion and that "by the end of 2024, announced buybacks for the year will set a new record.". In contrast to the poor market timing exhibited by companies' repurchase decisions, in

Insiders Sell Stock. Their Companies Buy. It's Not a Good Sign

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment

Top
Latest

No comments yet

Most Discussed

Terms and Conditions·Privacy Policy

Company: TTMF Limited. Tech supported by Xiangshang Yixin.

Email：uservice@ttm.financial

{"i18n":{"language":"en_US"},"data":{"magic":2,"id":361402987622608,"tweetId":"361402987622608","gmtCreate":1729253119191,"gmtModify":1729770844570,"author":{"id":4153824493866232,"idStr":"4153824493866232","authorId":4153824493866232,"authorIdStr":"4153824493866232","name":"cmoney","avatar":"https://community-static.tradeup.com/news/default-avatar.jpg","vip":1,"userType":1,"introduction":"","boolIsFan":false,"boolIsHead":false,"crmLevel":6,"crmLevelSwitch":0,"individualDisplayBadges":[],"fanSize":0,"starInvestorFlag":false},"themes":[],"images":[],"coverImages":[],"html":"<html><head></head><body><p>agree with MikeTee and one more point to add.&nbsp;</p>\n<p>From a basic investment principles perspective, employees should always sell a lot of their company stock. They are fully invested in the company with their time and their work - and they are getting lots of income from it. They usually have invested or locked up shares also. So they should be selling in order to diversify, buy a house, or whatever.</p></body></html>","htmlText":"<html><head></head><body><p>agree with MikeTee and one more point to add.&nbsp;</p>\n<p>From a basic investment principles perspective, employees should always sell a lot of their company stock. They are fully invested in the company with their time and their work - and they are getting lots of income from it. They usually have invested or locked up shares also. So they should be selling in order to diversify, buy a house, or whatever.</p></body></html>","text":"agree with MikeTee and one more point to add. From a basic investment principles perspective, employees should always sell a lot of their company stock. They are fully invested in the company with their time and their work - and they are getting lots of income from it. They usually have invested or locked up shares also. So they should be selling in order to diversify, buy a house, or whatever.","highlighted":1,"essential":1,"paper":1,"likeSize":17,"commentSize":0,"repostSize":0,"favoriteSize":0,"link":"https://ttm.financial/post/361402987622608","repostId":2476471829,"repostType":4,"repost":{"id":"2476471829","weMediaInfo":{"introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"media_name":"Dow Jones","id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"pubTimestamp":1729241637,"share":"https://www.laohu8.com/m/news/2476471829?lang=&edition=full","pubTime":"2024-10-18 16:53","market":"sg","language":"en","title":"Insiders Sell Stock. Their Companies Buy. It's Not a Good Sign","url":"https://stock-news.laohu8.com/highlight/detail?id=2476471829","media":"Dow Jones","summary":"Corporate insiders are selling with one hand what they're buying with their other.In their personal accounts, they are selling shares of their companies at near-record rates. With their companies' cash, in contrast, they are repurchasing shares at a record rate. This schizophrenic behavior doesn't bode well for the market.Among all companies with any insider transactions so far in October, just 13% have experienced more insider buying than insider selling. That's the lowest insider buy ratio in at least a decade, according to the Seyhuns' analysis.In contrast to the insiders' stinginess in their personal portfolios is their eagerness to purchase their companies' shares with corporate cash. Rubin told Barron's that based on year-to-date buyback activity, corporations' announced buybacks have now exceeded $1 trillion and that \"by the end of 2024, announced buybacks for the year will set a new record.\". In contrast to the poor market timing exhibited by companies' repurchase decisions, in","content":"<html><head></head><body><p>Corporate insiders are selling with one hand what they&#39;re buying with their other.</p><p>In their personal accounts, they are selling shares of their companies at near-record rates. With their companies&#39; cash, in contrast, they are repurchasing shares at a record rate. This schizophrenic behavior doesn&#39;t bode well for the market.</p><p>Insiders&#39; stinginess when it comes to their own money is illustrated by data compiled by InsiderSentiment.com, a website maintained by Nejat and Jon Seyhun. The former is a finance professor at the University of Michigan and one of academia&#39;s leading experts on interpreting the behavior of insiders. The latter is an analyst at InsiderSentiment.</p><p>Among all companies with any insider transactions so far in October, just 13% have experienced more insider buying than insider selling. That&#39;s the lowest insider buy ratio in at least a decade, according to the Seyhuns&#39; analysis.</p><p>Consider Nvidia. Over the past three months, insiders have sold more than $700 million of the company&#39;s stock and bought none, according to Yahoo Finance data. Yet the company is in fifth place in a ranking of companies based on the greatest dollar amount of repurchase announcements this year, according to Jeffrey Yale Rubin, president of Birinyi Associates.</p><p>In contrast to the insiders&#39; stinginess in their personal portfolios is their eagerness to purchase their companies&#39; shares with corporate cash. Rubin told Barron&#39;s that based on year-to-date buyback activity, corporations&#39; announced buybacks have now exceeded $1 trillion and that &#34;by the end of 2024, announced buybacks for the year will set a new record.&#34;</p><p>This contradictory behavior hasn&#39;t been the norm over the past decade. Since 2014, there has been a rough correlation between insiders&#39; behavior in their own portfolios and moves made with corporate cash. Their recent behavior is unusual and deserving of closer analysis.</p><p>The insiders&#39; implicit divergent messages can&#39;t both be right, needless to say. Winston Chua, a liquidity analyst at EPFR, a leading provider of fund flow data, says that &#34;if I had to bet which will prove to be correct -- the bullish message of corporate repurchases or the bearish message of the insiders -- I&#39;d bet with the insiders.&#34; Prof. Seyhun concurs.</p><p>There are several reasons to agree with their assessment. One is that corporations historically have been poor market timers with their repurchase decisions. &#34;Most buybacks are &#39;buy high&#39; situations,&#34; Rob Arnott, founder and chairman of Research Affiliates, said in an email. Even if we didn&#39;t know that insiders with their own money were such heavy net sellers, therefore, the record pace of recent buybacks would be a source of concern.</p><p>In contrast to the poor market timing exhibited by companies&#39; repurchase decisions, insiders historically have been more right than wrong in the timing of their personal purchases of their companies&#39; shares. Prof. Seyhun has found from his research that the insider buy ratio has one of the best track records when forecasting the market&#39;s 12-month return -- superior to many better-known valuation indicators.</p><p>To be sure, the insiders as a group have been pessimistic for more than a year now and, at the same time, corporations have been aggressively buying back their shares -- and yet the stock market has continued ever higher. While that might incline you to bet on the bullish message from repurchases rather than the pessimistic message from insiders, such a bet extrapolates the recent past and ignores the much longer history that suggests the contrary.</p><p>The Seyhuns write that &#34;recent insider selling...is looking like the beginning of a larger pattern of indiscriminate insider selling.&#34;</p></body></html>","collect":0,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Insiders Sell Stock. Their Companies Buy. It's Not a Good Sign</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nInsiders Sell Stock. Their Companies Buy. It's Not a Good Sign\n</h2>\n\n<h4 class=\"meta\">\n\n\n<div class=\"head\" \">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">Dow Jones </p>\n<p class=\"h-time\">2024-10-18 16:53</p>\n</div>\n\n</div>\n\n\n</h4>\n\n</header>\n<article>\n<html><head></head><body><p>Corporate insiders are selling with one hand what they&#39;re buying with their other.</p><p>In their personal accounts, they are selling shares of their companies at near-record rates. With their companies&#39; cash, in contrast, they are repurchasing shares at a record rate. This schizophrenic behavior doesn&#39;t bode well for the market.</p><p>Insiders&#39; stinginess when it comes to their own money is illustrated by data compiled by InsiderSentiment.com, a website maintained by Nejat and Jon Seyhun. The former is a finance professor at the University of Michigan and one of academia&#39;s leading experts on interpreting the behavior of insiders. The latter is an analyst at InsiderSentiment.</p><p>Among all companies with any insider transactions so far in October, just 13% have experienced more insider buying than insider selling. That&#39;s the lowest insider buy ratio in at least a decade, according to the Seyhuns&#39; analysis.</p><p>Consider Nvidia. Over the past three months, insiders have sold more than $700 million of the company&#39;s stock and bought none, according to Yahoo Finance data. Yet the company is in fifth place in a ranking of companies based on the greatest dollar amount of repurchase announcements this year, according to Jeffrey Yale Rubin, president of Birinyi Associates.</p><p>In contrast to the insiders&#39; stinginess in their personal portfolios is their eagerness to purchase their companies&#39; shares with corporate cash. Rubin told Barron&#39;s that based on year-to-date buyback activity, corporations&#39; announced buybacks have now exceeded $1 trillion and that &#34;by the end of 2024, announced buybacks for the year will set a new record.&#34;</p><p>This contradictory behavior hasn&#39;t been the norm over the past decade. Since 2014, there has been a rough correlation between insiders&#39; behavior in their own portfolios and moves made with corporate cash. Their recent behavior is unusual and deserving of closer analysis.</p><p>The insiders&#39; implicit divergent messages can&#39;t both be right, needless to say. Winston Chua, a liquidity analyst at EPFR, a leading provider of fund flow data, says that &#34;if I had to bet which will prove to be correct -- the bullish message of corporate repurchases or the bearish message of the insiders -- I&#39;d bet with the insiders.&#34; Prof. Seyhun concurs.</p><p>There are several reasons to agree with their assessment. One is that corporations historically have been poor market timers with their repurchase decisions. &#34;Most buybacks are &#39;buy high&#39; situations,&#34; Rob Arnott, founder and chairman of Research Affiliates, said in an email. Even if we didn&#39;t know that insiders with their own money were such heavy net sellers, therefore, the record pace of recent buybacks would be a source of concern.</p><p>In contrast to the poor market timing exhibited by companies&#39; repurchase decisions, insiders historically have been more right than wrong in the timing of their personal purchases of their companies&#39; shares. Prof. Seyhun has found from his research that the insider buy ratio has one of the best track records when forecasting the market&#39;s 12-month return -- superior to many better-known valuation indicators.</p><p>To be sure, the insiders as a group have been pessimistic for more than a year now and, at the same time, corporations have been aggressively buying back their shares -- and yet the stock market has continued ever higher. While that might incline you to bet on the bullish message from repurchases rather than the pessimistic message from insiders, such a bet extrapolates the recent past and ignores the much longer history that suggests the contrary.</p><p>The Seyhuns write that &#34;recent insider selling...is looking like the beginning of a larger pattern of indiscriminate insider selling.&#34;</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","type":0,"thumbnail":"","relate_stocks":{"BK4554":"元宇宙及AR概念","BK4532":"文艺复兴科技持仓","HK0000320264.USD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (USD) ACC","IE0004445239.USD":"JANUS HENDERSON US FORTY \"A2\" (USD) ACC","IE0034235295.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"A\" (USD) ACC","IE00BJJMRX11.SGD":"Janus Henderson Balanced A Acc SGD","IE00B19Z9505.USD":"美盛-美国大盘成长股A Acc","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","BK4567":"ESG概念","IE00BHPRN162.USD":"BNY MELLON BLOCKCHAIN INNOVATION \"B\" (USD) ACC","BK4533":"AQR资本管理(全球第二大对冲基金)","GB00BDT5M118.USD":"天利环球扩展Alpha基金A Acc","LU0048584097.USD":"FIDELITY FUNDS  GLOBAL THEMATIC OPPORTUNITIES \"A\" (USD) INC","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","BK4587":"ChatGPT概念","IE00B775H168.HKD":"JANUS HENDERSON BALANCED \"A5M\" (HKD) INC","LU0061474960.USD":"天利环球焦点基金AU Acc","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","IE00BJLML261.HKD":"HSBC GLOBAL EQUITY INDEX \"HCH\" (HKD) ACC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","BK4550":"红杉资本持仓","IE00BDRTCR15.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC A","IE00BKPKM429.USD":"NEUBERGER BERMAN GLOBAL SUSTAINABLE EQUITY \"A\" (USD) ACC","BK4141":"半导体产品","IE0004445015.USD":"JANUS HENDERSON BALANCED \"A2\" (USD) ACC","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU0057025933.USD":"SUSTAINABLE GLOBAL THEMATIC PORTFOLIO \"AX\" (USD) ACC","LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU0061474705.USD":"THREADNEEDLE (LUX) GLOBAL DYNAMIC REAL RETURN \"AU\" (USD) ACC","BK4551":"寇图资本持仓","IE00B19Z8X17.USD":"FTGF CLEARBRIDGE US LARGE CAP GROWTH  \"AG\" (USD) ACC","IE00B3M56506.USD":"NEUBERGER BERMAN EMERGING MARKETS EQUITY \"A\" (USD) ACC","IE00BYXW3230.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"AA\" (USD) ACC","BK4549":"软银资本持仓","IE00BFSS8Q28.SGD":"Janus Henderson Balanced A Inc SGD-H","IE0034235188.USD":"PINEBRIDGE GLOBAL FOCUS EQUITY \"A\" (USD) ACC","IE00BDCRKT87.USD":"PINEBRIDGE GLOBAL DYNAMIC ASSET ALLOCATION \"ADC\" (USD) INC","BK4548":"巴美列捷福持仓","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","NVDA":"英伟达","IE00BN29S564.USD":"JANUS HENDERSON BALANCED \"A3\" (USD) INC","HK0000320223.HKD":"TAIKANG KAITAI CHINA NEW OPPORTUNITIES FUND \"A\" (HKD) ACC","BK4529":"IDC概念","IE0009356076.USD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A2\" (USD) ACC","IE00B7KXQ091.USD":"Janus Henderson Balanced A Inc USD"},"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","is_english":true,"share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","article_id":"2476471829","content_text":"Corporate insiders are selling with one hand what they're buying with their other.In their personal accounts, they are selling shares of their companies at near-record rates. With their companies' cash, in contrast, they are repurchasing shares at a record rate. This schizophrenic behavior doesn't bode well for the market.Insiders' stinginess when it comes to their own money is illustrated by data compiled by InsiderSentiment.com, a website maintained by Nejat and Jon Seyhun. The former is a finance professor at the University of Michigan and one of academia's leading experts on interpreting the behavior of insiders. The latter is an analyst at InsiderSentiment.Among all companies with any insider transactions so far in October, just 13% have experienced more insider buying than insider selling. That's the lowest insider buy ratio in at least a decade, according to the Seyhuns' analysis.Consider Nvidia. Over the past three months, insiders have sold more than $700 million of the company's stock and bought none, according to Yahoo Finance data. Yet the company is in fifth place in a ranking of companies based on the greatest dollar amount of repurchase announcements this year, according to Jeffrey Yale Rubin, president of Birinyi Associates.In contrast to the insiders' stinginess in their personal portfolios is their eagerness to purchase their companies' shares with corporate cash. Rubin told Barron's that based on year-to-date buyback activity, corporations' announced buybacks have now exceeded $1 trillion and that \"by the end of 2024, announced buybacks for the year will set a new record.\"This contradictory behavior hasn't been the norm over the past decade. Since 2014, there has been a rough correlation between insiders' behavior in their own portfolios and moves made with corporate cash. Their recent behavior is unusual and deserving of closer analysis.The insiders' implicit divergent messages can't both be right, needless to say. Winston Chua, a liquidity analyst at EPFR, a leading provider of fund flow data, says that \"if I had to bet which will prove to be correct -- the bullish message of corporate repurchases or the bearish message of the insiders -- I'd bet with the insiders.\" Prof. Seyhun concurs.There are several reasons to agree with their assessment. One is that corporations historically have been poor market timers with their repurchase decisions. \"Most buybacks are 'buy high' situations,\" Rob Arnott, founder and chairman of Research Affiliates, said in an email. Even if we didn't know that insiders with their own money were such heavy net sellers, therefore, the record pace of recent buybacks would be a source of concern.In contrast to the poor market timing exhibited by companies' repurchase decisions, insiders historically have been more right than wrong in the timing of their personal purchases of their companies' shares. Prof. Seyhun has found from his research that the insider buy ratio has one of the best track records when forecasting the market's 12-month return -- superior to many better-known valuation indicators.To be sure, the insiders as a group have been pessimistic for more than a year now and, at the same time, corporations have been aggressively buying back their shares -- and yet the stock market has continued ever higher. While that might incline you to bet on the bullish message from repurchases rather than the pessimistic message from insiders, such a bet extrapolates the recent past and ignores the much longer history that suggests the contrary.The Seyhuns write that \"recent insider selling...is looking like the beginning of a larger pattern of indiscriminate insider selling.\"","news_type":1},"isVote":1,"tweetType":1,"viewCount":66,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["NVDA"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":false,"andRepostAutoSelectedFlag":false,"upFlag":true,"length":327,"xxTargetLangEnum":"ORIG"},"commentList":[],"hasMoreComment":false,"orderType":2}