My readers know I spend a lot of time looking at what corporate insiders are buying and selling. The reason for that is simple – I’ve made good money following these trends. Insiders tend not to buy stock unless they’re certain they’re going to see high rates of return, and when they sell, it’s usually for a good reason.
Right now, the outlook is extremely bearish for insider transactions. Not only are there more individual sellers than buyers, but the dollar volumes on the sell side dwarf the buying volumes. And that’s despite the fact that prices across the board are hitting 52-week lows.
Last week we continued to see seven-figure sales by insiders at high-growth darlings like Service Now, Palo Alto Networks, AirBNB, and Arista Networks.
This article first appeared in Money Morning.