Summary
With the carnage that took place in equity markets last week, we expected to see a pronounced reaction from corporate insiders. But the weekly insider-transaction data from Vickers Stock Research shows no major response. Possible explanations for that include the imminent start of earnings season (and the associated trading restrictions that are now in place for many insiders) and the fact that the really bad days last week were at the very end of the week, leaving less time for insider trades to take place and be included in Vickers’ data for the week. But even on the two worst days (Thursday and Friday), there was no rush to sell by insiders — though no rush to buy either. Also in play is the possibility that insiders, like many investors, took to the slide-lines as the drop was so sudden and so steep that a ‘no choice but to wait it out’ posture was all that made sense. A quick look at Vickers’ major one-week sell/buy ratios shows slightly improving sentiment on the NYSE and slightly worsening sentiment on the Nasdaq. But end of day, the broader eight-week ratios continue to improve for the NYSE, the Nasdaq, and for Vickers’ Total Eight-Week Sell/Buy Ratio (all exchanges). That eight-week barometer is now at 3.48 on a scale where the neutral range runs from 2.00 to 6.00 and the bullish range kicks in under 2.00. The current reading compares favorably to 3.74 last week and a recent high of 6.02 in late February. On a sector basis, insider buying exceeded selling in Energy last week, with shares valued at $2.4 million bought versus $19,521 sold. Buying was also notable in Consumer Discretionary, as shares valued at $11 million were bought, trailing the level of selling activity
