Uncategorized

NYTimes: Insider trading still good indicator for stocks

close

Email a Friend

As a follow-up to The Anti-Galleon Model: 4 resources to insider trade — legally, I just wanted to comment on a NY Times article today by Mark Hulbert called More often than not, the insiders get it right.  The article tracks how insider selling tracked during the downturn in late 2008 and how insider buying accompanied the pickup in 2009.

Couple of things here:

  • Insider selling abated somewhat during a tough January 2010, leading to what some auger as merely a small pullback in the market
  • While typically pretty accurate, insiders “failed to recognize the top of the bull market in October 2007, and didn’t anticipate the depth of the decline that followed.” (according to Hulbert)
  • According to Prof. Seyhun, the axe on insider trading, insiders have been correct far more often than they’ve been wrong, and this is still likely to be the case.

I like aggregate insider buying/selling activity to help forecast market movements but I think it’s even more useful when looking at individual securities.  My gut tells me that seeing the CFO buy shares hand over fist in a small-cap company is more useful that knowing the sell-buy ratio, as computed by Vickers, is 3.51.

0 comments on “NYTimes: Insider trading still good indicator for stocks”

Uncategorized

Rebranding rebirth: Netspend and Rêv come together to form Ouro

  • Prepaid card provider, Netspend, and Rêv, a digital payment technology provider, recently integrated under a new brand called Ouro.
  • The new brand tells the story of rebirths as the Sosa brothers return to Netspend, a company they founded out of their apartment in 1999.
Rabab Ahsan | November 20, 2023
Uncategorized

The Daily Tearsheet: A day in the life of Kristen Anderson, the CEO and co-founder of Catch

  • In this daily, we've got a day in the life of Kristen Anderson, the CEO and co-founder of Catch
  • And in other news, NFTs continue to spread.
Rivka Abramson | May 03, 2022
Uncategorized

Job Opening: People Person

  • Tearsheet is growing and looking to hire a People Person.
  • You'll help us source and grow new talent for our team.
Tearsheet Editors | December 09, 2021
Uncategorized

Job Opening: Audio-Visual Editor

  • Tearsheet's podcasts, webinars, and conferences are industry favorites.
  • We're looking for a ninja editor to take our audio/visual content to the next level.
Arifah Esar | January 01, 2021
Uncategorized

Careers at Tearsheet – Journalist

  • Tearsheet is an impactful media organization, helping its audience understand the impact technology has on financial services.
  • We're always looking for great writing talent to add to our team and organization.
Aaron Singer | January 01, 2021
More Articles