Insiders signal a time for caution

Article Abstract:

The year 1996 is witnessing an unprecedentedly aggressive selling activity among insiders as insider selling of restricted stocks reaches a high of $3 billion for May 1996 alone. Although restricted stock sales by insiders were only equal to $1 billion per month historically, 1995 set a record $1.34 billion per month in insider selling. Based on the current insider activity, 1996 is being anticipated to even exceed 1995's record in restricted stock sales by insiders. As a valuation clue, this activity is indicative of the current tenuous nature of the stock market.

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The view from Dow 4400

Article Abstract:

The stock market rally in late May 1995 has caused expert investors some concern since the downward correction only brought the Dow Jones index down to the relatively high level of 4,000. Although easing inflation, better earnings and an improving dollar seem to support the market's bouyancy, veteran players remain cautious. This sentiment is borne out by insiders who have increased their selling pace beyond that of 1994, particularly in the retail and investment sectors.

Securities & Commodities Exchanges, Dow Jones Equity Market Index (Index)

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A word about the current rate of insider sales

Article Abstract:

Insider selling has gone up in July and August 1997, raising the five week moving average to the highest level since July 1996. The spikes in insider selling may be misleading but quarterly insider figures still show that the ratio is becoming more bearish. The consistently strong stock prices may continue this trend for some more months until a sharp correction in stock prices drives insider selling and buying down to the historical 2 to 1 ratio.

Stocks & Other Equity Securities, Statistics

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