Blogs & Comment

Insiders optimistic

As stock markets tumble, company insiders are loading up big time. Thats 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 Researchs indicators of insider sentiment recently jumped to another record high. On the Toronto Stock Exchange (TSX), 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 Financialand Royal Bank of Canadahad the highest amount of net selling in the sector over the last two months. However, Power Financialbucked the trend and had the fourth highest net buying of ALL companies on the TSX.