Company insiders who hit market low in March are now starting to sell shares


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As US stocks hit their most expensive levels in two decades, executives in charge of companies benefiting from the rally are showing signs of anxiety.

Insiders of companies, whose purchases correctly signaled the bottom in March, are now mostly sellers. Nearly 1,000 executives and business executives unloaded shares of their own companies this month, beating insider buyers by a 5-to-1 ratio, according to data compiled by the Washington Service. Only twice in the past three decades has the sell-to-buy ratio been higher than it is today.

Data from showed a similar trend. In the past four weeks, companies that made insider sales have surpassed those that bought by 186%, approaching the 200% level that has tended to mark short-term market highs over the past four weeks. the last decade, according to Jonathan Moreland, director of the company. research.

The rally comes after stocks rebounded from the bearish market liquidation, lifting the S&P 500 more than 45% from its March low. Now, with tech stocks at record highs even as the pandemic and recession rage, some leaders are clearing up.


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