Chart of the week: US executives are dumping their stock at the fastest pace in over a decade
Chart of the week: US executives are dumping their stock at the fastest pace in over a decade
By comparison, during the COVID Crash, they were buying at a record rate
US insiders have been selling their companies’ stock at the quickest pace in at least 10 years, according to InsiderSentiment analysis.
The percentage of publicly traded corporations experiencing net buying from executives has dropped to ~15% (red circle), way below its 10-year average of ~25%.
This means that the number of sales relative to buys has rapidly increased over the last several weeks.
NVIDIA's insiders alone sold the most shares on record over the last 3 months.
This massive profit-taking comes after historic market gains when the S&P 500 returned 33% since October 2023 and NVIDIA a jaw-dropping 179%.
The interesting thing on this chart is that during the COVID Crash, US executives were buying stocks at a record pace when they were relatively cheap and traded near the Crisis lows (green circle).
Why therefore corporate insiders are selling so much stock these days? Are stocks really that expensive? You can read the valuation analysis of the US stock market below:
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So what’s your take on this? Is it time now to sell also or why are they doing this? Are they going to re allocate their resources to other stocks?