Insider-Selling Explodes To Record Highs As Buybacks Re-Emerge

Well, this is a little awkward...

Since the start of 2021, Bloomberg reports that company executives sold $300 million worth of shares through Friday, 16 times the total they purchased (a total of 1,000 insiders sold their own stock and 128 bought shares, leaving the sell-to-buy ratio poised for the highest monthly reading in data going back to 1988).

And at the same time, those company executives have authorized their companies to buy back $29 billion over the stretch, up 46% from a year earlier

(Click on image to enlarge)

While factors other than greed, valuations, and knowing just how bad shit really is can influence insiders’ decisions to sell, their action warrants caution to Mark Freeman, chief investment officer at Socorro Asset Management LP.

“Investors always want to make sure their objectives are aligned with the management,” Freeman said.

“Ideally you would like to see that management feels that what they own is valuable and going to continue to grow in value, as opposed to the potential message that could be ‘well, now is a good time to sell.’”

Clearly, the message from the C-Suite, much like that of so many officials across the nation during COVID lockdowns, is "do as I say, not as I do." Just keep buying my stock while I sell it...

Are America's corporate executives worried about socialism... taxes... and the 'eat the rich' mentality that is coming? Perhaps it's time to do as they do too?

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