Vickers: Insiders Are Buying

by: Larry MacDonald September 23, 2008    
Larry MacDonald

Larry MacDonald

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As stock markets tumble, company insiders are loading up big time. That’s one bullish sign amidst all the gloom (insider trading is most predictive for 12-month periods, according to studies).

In the United States, the Vickers Weekly Insider Report recently reported insiders sold 1.7 shares for every one bought (8-week moving average basis). This compares to the historical average of 2 to 2.5 shares sold for each share bought.

In Canada, INK Research’s indicators of insider sentiment recently jumped to “another record high.” On the Toronto Stock Exchange, every company with a sell-only filing was matched by three companies with a buy-only filing. Sectors leading the way were energy and materials.

The sector lagging the most on the TSX was financials – do bank insiders know of bad news on the way? IGM Financial and Royal Bank of Canada had the highest amount of net selling in the sector over the last two months. However, Power Financial bucked the trend and had the fourth highest net buying of ALL companies on the TSX.

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This article has 2 comments:

  •  
    Sep 23 11:38 PM
    Insiders were buying starting 2000 all the way to 2002...
    Reply | Link to Comment
  •  
    Sep 24 08:44 AM
    Insiders were SELLERS in 2000. Check your facts. Good article.
    Reply | Link to Comment
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