Executives are selling stock as the market experiences its epic rebound
Laurence “Larry” Fink, chairman and chief executive officer of BlackRock.
Chris Goodney | Bloomberg | Getty Images
Company insiders are dumping shares as stocks experience their epic rebound from the coronavirus recession. The sales are a major shift from the insider buying frenzy during the market bottom in March.
Among the sellers are the heads of blue-chip companies like UnitedHealth and BlackRock.
The ratio of companies with insider buying compared to insider selling is at 0.27 in July, the lowest level since at least 2000, according to the Washington Service, a provider of insider trading and data analytics. The ratio has come down significantly since its 11-year high of 1.75, set in March.
“I think insiders broadly thought the March sell-off was over-pessimistic,” Raymond James analyst Tavis McCourt told CNBC. “As the market’s recovered, we’ve just seen more selling, less buying, …continued .
[Source: CNBC News]