Aug 12, 2011
8:38 PM
Biggest Insider Buying Week Since March ’09; Where & Who
Posted by Dimitra DeFotis
Insiders haven’t been buying up their company stock at this pace since the market bottom in 2009.
While high volumes of insider activity falsely heralded a market bottom in November 2008, Ben Silverman at InsiderScore.com notes that no significant upside market correction lacked insider purchases over the past three decades. The latest buying was across sectors and may have peaked mid-week, though buying at financial services companies picked up while technology and energy insiders seemed to sit out some of the party.
via Stocks To Watch Today – Barrons.com.
My own comments on this. I have been one of the first to notice this and have posted it on our Twitter and Stocktwits accounts before most analysts and commentators took notice. MOST of these buys have been rather small dollar amounts, far closer to $100,000 then $1,000,000. What this tells me is that insiders think this is an ideal time to buy their stocks but they like everyone else fear a 2008 type correction that doesn’t bottom out to several months later. They are nibbling.