are purchasing shares while outsiders ditch riskier assets, sucking trillions in value from the U.S. stock market in recent weeks.
Insider buying activity provides "insight into which company insiders believe they have the liquidity to withstand a 1-2 month massive decline in economic activity and the solvency to withstand a 'go forward' economy that is less robust than the one left behind," Raymond James analyst Tavis McCourt said in a note to clients.
"Insiders have a 35+ year track record of buying on the type of extreme weakness experienced in Q1'20," InsiderScore director of research Ben Silverman said in a note. "A dramatic increase in insider buying volume combined with dampened levels of insider selling has resulted in the generation of industry buy inflections – our strongest, quantitative macro signal – for the entire market.
Wells Fargo CEO Charles Scharf bought about $5 million worth of stock and Planet Fitness chief Rondeau Christopher purchased about $4 million in stock earlier this month. Both stocks have lost about 40% of their values since the February highs.
It’s very difficult for executives to trade their own stock. They have long lockout periods before and after earnings and when they have material information. Typically, they’re set up on automated trading that is predetermined. I call BS on this.
Cause they know that bailout money is otw n also buy back at a much lower price it’s a cycle
Translation: CNBC authors want to inflate prices and dump stocks.
Everyone wants to purchase shares these days...
Nice soundbite to ramp the market but in your words “ dampened levels of insider selling” affect that ratio. Suckers rally. The next correction down after month end.
Airlines did that and now they're feeling it, wanting bailouts for being greedy and buying too high
lol, don't get burned like did in 2008
Executives buying stocks is not a sign of a recovery only a sign of opportunity and greed
It helps, but they don't have a crystal ball.
That’s bullshit. The rich will get get richer, and the rest of us will die.
BS
Social capitalism!
I think I want to hear from the companies themselves during earnings next month before I buy anything. My guess is that this has a long way to go.
Translation: they bought a few days ago, they want to you buy the shares they are dumping soon
carlossosafrias
Dump.exe
The CEO profits heavily off of corporate buybacks. Who is now buying back stock, which is essentially the company buying back the stock. Is this the loophole moving forward?
Wait until intel, Dell and the others need the silicon to produce semiconductors. They will be beholden to the Chinese who may hold this mined resource over their heads. Then I imagine the “free market” will demand our Fed. Gov. to step in and help them out. Idiots...
Not true (as per medical records.)
GetBack2Work Peasants EasterIsComing
Keep telling yourself that CNBC, just trying to find buyers for your shorts
They must all know something we don't know....
Stocks are a bargain now, but further patience will be rewarded.
Thats because there's no more gold for them to buy. There isnt much else for them to do with their money at this point.
this is actually a good sign for another downtown; both co buybacks & exec buying are 'generally' done at the wrong times - we'll see. but even at monday lows, 'mkt' still overvalued, just not as much as 2/19 - of course, that fact will be disputed
Must prop up market per secret Bailout orders from Trump.
This is very good. Let’s keep the capital markets strong.
Hey , what do you think of companies buying shares for employees instead of the traditional buyback model?
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