Insider buyers and sellers have stepped back since the stock rally in 2023 unfolded, according to the Citi equity team.
"Interestingly, both (buying and selling) have had some relationship to index level forward performance historically," strategist Scott Chronert wrote in a note. Over "the last ten years there was a decent +0.51 correlation between the number of insider buyers and 12M forward returns."
"As for the number of insider sellers, there is some evidence that their timing is good but the correlation is weaker at -0.17," Chronert said. "Taken together, with more weight on the insider buying measure, there is a mixed signal that generally implies lower but positive forward return expectations."
Moving down to single stock level, the team screened "for those companies with the largest amount of insider buying/selling as a percentage of market cap over the past 6 months."
"To be clear, this data reflects only open market buys/sales," Chronert said. "Vesting or new grants of stock comp are not included as a buy. However, selling of vested stock is included as a sale. This explains the higher percentages of market cap for sales vs buys."
"In trying to assess the relevance of this data, the trend or deviation from average is probably more important than the absolute number," he said. "In any event, the data is quite interesting. In particular, note that most of the higher insider buys are in sectors outside of Tech (XLK), which stands in contrast to many of the top sales."
Top 20 inside buyers
VF Corp (VFC) insider purchases percentage of market cap 0.033%
The SEC's Edgar database allows free public access to all filings related to insider buying and selling of stock shares. A number of financial information websites offer easier-to-use databases of insider buying. Canadian transactions are available on a government website and on financial websites.
SPY has a conensus rating of Moderate Buy which is based on 401 buy ratings, 99 hold ratings and 4 sell ratings. What is SPY's price target? The average price target for SPY is $583.29. This is based on 504 Wall Streets Analysts 12-month price targets, issued in the past 3 months.
Apple is Berkshire's largest public stock holding by far. Berkshire's $151 billion Apple stake is roughly four times larger than its second-largest holding. Buffett first bought Apple shares in the first quarter of 2016, and Apple's stock price is up more than 500% since the beginning of 2016.
MarketBeat is one of the best websites for getting data for insider transactions. Stocks that have clustered insider purchases in March include The Charles Schwab Corporation (NYSE:SCHW), Keurig Dr Pepper Inc. (NASDAQ:KDP), and Summit Therapeutics PLC (NASDAQ:SMMT).
Essentially, insider trading involves trading in a public company's stock by someone with non-public, material information about that stock. Insider trading is illegal, but if an insider trades their holdings and reports it properly, it is an insider transaction, which is legal.
The IBD Accumulation/Distribution Rating is a quick way to see if institutions are buying or selling a stock. This is found on MarketSmith's weekly chart or in IBD's Stock Checkup tool. Stocks are rated from A+ to E, with A+ being the best and E being the worst.
VOO typically provides a higher dividend yield compared to SPY. This aspect is particularly attractive to investors who prioritize income generation from their investments.
In the past year, QQQ returned a total of 29.88%, which is higher than SPY's 26.19% return. Over the past 10 years, QQQ has had annualized average returns of 18.31% , compared to 12.50% for SPY. These numbers are adjusted for stock splits and include dividends.
High insider ownership in growth companies often signals strong confidence from those who know the company best, making such stocks potentially attractive in these volatile market conditions.
Ivan Boesky was an American stock trader who became infamous for his role in an insider trading scandal during the 1980s. This scandal also involved several other corporate officers, employed by major U.S. investment banks, who were providing Boesky with tips about upcoming corporate takeovers.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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