Insider Selling Surges To Multi-Month High, Hits $662 Million, Ratio Of Selling To Buying Doubles To 423x From Week Earlier

Tyler Durden's picture Submitted by Tyler Durden on 11/01/2010 12:54 -0500

American ExpressInsider SellingMcDonalds

Bloomberg reports that the week ending October 29 saw the largest amount of insider selling (by notional) in S&P500 stocks in months, possibly in all of 2010 (unfortunately our records don’t go back all the way to the beginning of the year). Altogether, $662 million in stock was sold in the past week, compared to purchases of just $1.6 million. The result: an insider selling to buying ratio of 423x. This is nearly double the prior week’s 229x. Yet the ratio was rescued by three brave buyers who bought up $787k and $407k worth of American Express and Procter and Gamble. Absent these two purchases the ratio would have been a disaster. What is more important is the denominator side of the fraction, as the total selling over the week hit what appears to have been a near-term record, at a total of $662 million. Biggest selling continues to take place at the (no surprise here) tech names which continue to be bid up by investors hoping a return of the dot com bubble. If there is a clearer indication that no bubble is imminent than relentless insider selling, someone please tell us. And this week the insider certainly are telegraphing just that when it comes to Oracle, Apple, McDonalds, Precision Castparts, EMC and Coca Cola.

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by buzzsaw99
on Mon, 11/01/2010 – 12:59
#691119

PCP has been the darling of growth funds for years. If I were an insider I’d be selling too. Eric Schmidt needs your clownbux bitchez!

Login or register to post comments by Dr. Engali
on Mon, 11/01/2010 – 13:02
#691126

I’m sure  Jim Cramer would say buy buy buy.  This is a good sign. Insiders are looking to diversify their holdings as they move out of concentrated positions.  All that money will be going into market possibly into ambac.

Login or register to post comments by wiskeyrunner
on Mon, 11/01/2010 – 13:03
#691130

Thanks to the magic futures the insiders get to sell the strong gap up on every cash open. Thats how the market stays afloat. With out the index futures the selling pressure would have tanked the market long ago. Ah yes the magic stock index futures, free stock markups each and everyday.

Login or register to post comments by Mongo
on Mon, 11/01/2010 – 13:03
#691132

Soon only Cramer and his retarded sisters will do the buyin…

Login or register to post comments by King_of_simpletons
on Mon, 11/01/2010 – 13:06
#691137

They are just providing liquidity ;-p

Login or register to post comments by goodrich4bk
on Mon, 11/01/2010 – 13:07
#691142

I suspect that at least some selling is tax-related, ie., higher marginal rates next year for insiders (who most likely earn more than $250k a year).

Login or register to post comments by Ned Zeppelin
on Mon, 11/01/2010 – 13:21
#691197

And don’t forget “pre-planned sales as part of ongoing diversification of my portfolio,” another excuse often offered to explain sales by insiders trying to get away with as much loot as they can before TSHTF.

Login or register to post comments by BustedandDisgusted
on Mon, 11/01/2010 – 13:08
#691144

Larry Ellison sold 1,000,000 shares of orcle every single trading day of oct for a total 20,000,000 share’s for the month. He is obviously rosey about orcl’s near term future.

Login or register to post comments by Tinsu
on Mon, 11/01/2010 – 13:08
#691146

My guess is that a lot of this selling is to take advantage of lower cap gain rates in 2010.  There’s no way that these exec’s don’t have faith in their companies.  burp, burp.

Login or register to post comments by SheepDog-One
on Mon, 11/01/2010 – 13:10
#691147

Im sure insiders just want to make sure Jr gets his G.I. Joe with the Kung Fu grip, no underlying disaster apparent here, move along.

401k and pension holders being bagholderized like crazy and they dont even realize it, LOL.

Login or register to post comments by SpeakerFTD
on Mon, 11/01/2010 – 13:09
#691149

It’s so generous of the various pension funds that are supposed to be funding the basic retirements of middle class Americans to instead use their cash to fund the luxurious retirements of a small segment of elites.

Login or register to post comments by SheepDog-One
on Mon, 11/01/2010 – 13:11
#691154

Then again, anyone trusting someone else to take their money and provide for THEIR lavish retirement later deserve what they get, nothin.

Login or register to post comments by NotApplicable
on Mon, 11/01/2010 – 13:20
#691183

Surely you understand they do this as a public service. Think of it as hospice care for those who don’t know (and don’t want to know) that they are going to die.

Each day the delusion can be extended is another day of stress-free living for the apathetic. Now would you deny them this happiness, knowing full well the remainder of their life is going to be a wretched hand-to-mouth experience?

So you, as CEO of Widgets Inc., you know you can’t save them, there’s simply too many. But what you can do is to make sure you aren’t one of them, while retaining your own delusion that the hopium will indeed, save the day before it’s too late.

Login or register to post comments by SheepDog-One
on Mon, 11/01/2010 – 13:49
#691288

Hospice USA….effectively dead already…but a few more drops of juice in the IV can give the appearance of life just a bit longer.

Login or register to post comments by Ned Zeppelin
on Mon, 11/01/2010 – 13:19
#691180

There is a simple explanation for this. All of these execs selling have secret, handshake deals with all of the other execs to buy the stock of their company just as soon as the sales proceeds from the sale of their own company’s stock hit their brokerage account.  Everyone’s a winner.

 

 

Login or register to post comments by itsallgood
on Mon, 11/01/2010 – 13:20
#691182
“Separate data from the Investment Company Institute showed net flows of cash into equities in the past two weeks for the first time in six months.”

 

A modicum of balanced reporting would be appreciated. 

Login or register to post comments by Tyler Durden
on Mon, 11/01/2010 – 13:24
#691206

25th Sequential Stock Fund Outflow, $81 Billion Year To Date

Inflows are in foreign bubble stocks

Login or register to post comments by RockyRacoon
on Mon, 11/01/2010 – 15:04
#691491

Maybe it’s not all good?

Login or register to post comments by tim73
on Mon, 11/01/2010 – 13:23
#691202

We younger ones will probably get to borrow a broken shovel and one free red pill as retirement package…unless one chooses just dropping dead while working.

Login or register to post comments by geminiRX
on Mon, 11/01/2010 – 13:27
#691214

The only thing I have bought is PSLV.

 

Login or register to post comments by Nedly66
on Mon, 11/01/2010 – 13:28
#691218

ORCL insiders continue their selling tear. $210 million from 7 insiders, jesus. Is it coincidence that ORCL is right off its 52 week high?

Login or register to post comments by RmcAZ
on Mon, 11/01/2010 – 13:40
#691269

Who’s buying?

Login or register to post comments by SheepDog-One
on Mon, 11/01/2010 – 13:51
#691297

I dont know who’s buying today…seems that 100 point DOW erection lost all its Viagra real quick! And on election eve to boot? Cant have that…all PPT personel man your battlestations!

Login or register to post comments by Asleep4Now
on Mon, 11/01/2010 – 15:15
#691512

Can somebody explain to me how this 423x sell buy ratio differs from the Vickers Weekly Insider Report number which, according to MarketWatch, is a much lower ratio:

“According to the Vickers Weekly Insider Report, corporate insiders — companies’ officers, directors and largest shareholders — last week sold 5.29 shares for every one share that they bought. The comparable figure for late August was 1.02-to-1.”

Source: http://www.marketwatch.com/story/update-on-behavior-of-corporate-insider…

Login or register to post comments by t0mmyBerg
on Mon, 11/01/2010 – 16:01
#691618

Not sure what vickers shows but my guess would be it is not just S&P500 which this Bloomberg list is or was last time I looked at this.  I get a similar report and the dollars SLD have dwarfed the dollars BOT for two months at least.  Lots SLD probably is to get this  years cap gains rate rather than next years, and they can just get new options which will vest and then they can sell them after Maobama is merely a bad memory.  So unfortunately this is not a clean signal for trading.  Kind of the Fed to give them a rising market into which to sell what with all this talk of printing dollars ad infinitum.  I wonder how many of these dollars are being channeled into PM.  That is the report I would like to see.  Mon oncle, who was a big muckety muck exec back in the day bought a small warehouse full of gold and silver when it was sub $400 and sub $5.  I will offer to be his bodyguard or something when the SHTF.  Wait I have his address around here somewhere…   What , the mic is on?…

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