Insiders Are Now Unloading Stocks – Here’s Why You Shouldn’t See This as a Sell Signal

Companies’ largest shareholders are selling stock at an aggressive clip, skewing the data

by Mark Hulbert
Market Watch

CHAPEL HILL, N.C. — Corporate insiders apparently don’t believe a bear market is imminent.

That’s the conclusion I draw from data compiled by Nejat Seyhun, a finance professor at the University of Michigan and one of academia’s leading experts on the behavior of corporate insiders. The last time I checked in with Seyhun, in mid-June, the data on all publicly traded stocks were saying something similar. I reported then that “corporate insiders do not appear to be particularly worried about a bear market occurring anytime soon” and were therefore “providing powerful support for the bull market.”

Since then, the S&P 500 (with dividends) has gained 10%.

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