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Insider Trends Are Added to Insider Trades Page

September 26, 2011 | About:
insider

insider

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If you visit GuruFocus page of Insider Trades, you may have noticed that we have updated the page with three new features:

1. The Trends of insider trades are added.

2. Now you can drill down to the inside trades in different sectors and industries.

3. Historical trends of insider trades are displayed for the overall market and for different sectors and industries.

As we reported before, the aggregated insider trading activities can serve as a very good indicator for market predictions. This was proved true again in the last market crash from the fall of 2008 to the spring of 2009, when the ratio of insider buying over insider selling jumped dramatically from the regular levels. For details, please see the chart below. The ratio and the corresponding market ETF (SPY) is drawn to show the correlations. Clearly extremely active insider buying was observed from the fall of 2008 to the spring of 2009. Lately we observe this activity increasing again as the market declined.

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The Trends of insider trades are added

In the new “Insider Trend” page, we display the trends of insider trades activities across different industries. The sectors with the most active insider buying activities over the past 30 days are displayed first. As displayed in the page, financial sector now has the highest insider buying activities. The correction between the financial sector ETF (IVY) and the insider buy/sell ratio is displayed below:

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The financial sector ETF IVY is now about 60% lower than its peak in June 2007 and about 30% higher than it was at the bottom of March 2009. The insider buy/sell ratio in financial sector is higher than any time over the past 5 years except during the market crash of 2009. This ratio is even higher for banks.

Drill down into Sectors and Industries

Now that you know which sectors/industries are most active with insider buys, you want to check out the details. The Industry and Market Cap jump menus we just added allow you to check out what stocks are bought or sold within the industry. These jump menus are also available for CEO Buys and CFO Buys page. Whenever you make changes to the selections of sector/industry, market cap, or the positions of the insider, the corresponding trends charts are displayed. For instance, this is the Insider Buy/Sell Ratio chart for CEO trades in financial sector.

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Interestingly, the CEO trade trend is not as bullish as with other insiders.

As always, if you have any comments and suggestions, please post them in the comment area of the area. We have also added the industry drill down function in the page of Dividend Stocks.

The Insider Trends and Sector/Industry Drill Down are for Premium Members only. If you are not a Premium Member, you are invited for a 7-day Free Trial.

About the author:

insider
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 2.7/5 (76 votes)

Comments

windplayer13
Windplayer13 - 3 years ago
Great feature.
paulwitt
Paulwitt - 3 years ago
Thanks for adding this feature!

Please leave your comment:


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