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Insider Selling

From the Wall Street Journal:

Regulatory filings show executives have recently unloaded about $115 in stock in their own companies for each $1 in purchases, a pace unequaled since the market high in October 2007

Insiders know the most about the company they are running (we hope), and if they are dumping their stock like there is no tomorrow, outsiders should be worried about the upcoming 3rd quarter numbers.

Of course, part of the selling could be attributable to pent-up demand, as executives don’t want to sell their stock when it is low but will happily sell it when the market is up almost 50%. But why sell now unless they see a catalyst for some downside in the near future?

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Categories: News & Commentary
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