With a buy-to-sell ratio of 1.19, the financial sector experienced the highest insider trading activity compared to its fellow sectors in November, according to GuruFocus Insider Buys/Sells Screener (note: Telecom sector not included due to lack of proportion in representation).
The ratio climbed in the last two months, only at 0.6 in September, then almost doubled in October at 1.14. The financial sector reported more than 1,000 insider trades this month compared to its 517 trades last month, with the following companies experiencing the busiest activity: Inland Real Estate Corp. (IRC, Financial), Federal Agricultural Mortgage Corp. (AGM, Financial), Eaton Vance Corp. (EV, Financial) and Ladenburg Thalman Financial Services (LTS, Financial).
The oil and gas sector appears in second place, with a buy-to-sell ratio of 0.85, with 183 insider buys and 202 insider sells reported in November – a total of 385 altogether. The companies in the oil and gas sector that reported the most insider trading include Tesco Corp. (TESO), Halcon Resources Corp. (HK), EOG Resources (EOG) and NGL Energy Partners LP (NGL).
As seen in the chart below, the financial sector’s insider activity bears a striking correlation to the market trend of the Dow Jones U.S. Financial Sector ETF (IYF, Financial), its ratio exceeding 1 when the financial market was down, which usually reveals more purchases than sells, and vice versa when the market was at an all-time high.
Financials reached its peak a little over a year ago, peaking at a buy-to-sell ratio of 4.41, the same time that IYF experienced a slumping trend line, negatively falling to its two-year low later that year.
The comparison also applies to the S&P’s Financial Select Sector SPDR ETF (XLF, Financial) (shown below), which shows a trend line resembling the IYF, trending negatively in the August 2011 time frame before reaching a three-year low in October 2011.
XLF data by GuruFocus.com
To view a collection of insider trends per varying sector, visit GuruFocus Insider Trends. Also view the rest of the sectors’ November buy-to-sell ratios below.
About the GuruFocus Real Time Insider Buys/Sells Screener
Developed based on the advantageous findings from a three-part GuruFocus insider research, the GuruFocus Insider Buys/Sells Screener enables Premium Members to see various insider trends by sector, by market cap, by S&P500 companies, or certain combinations of the three.
Be amazed at the correlation between insider trading activity and the ups and downs of the stock market. View comparisons of specific sectors, with graphs containing insider buy-to-sell ratios alongside corresponding ETF market values. GuruFocus even provides specialized screens for CEO buys and sells, and CFO buys and sells, in addition to insiders.
GuruFocus’ long list of Premium Membership perks provides many opportunities to follow your favorite Gurus and stocks more closely. If you are not a Premium Member yet, we invite you for a 7-Day Free Trial.
To read more about related topics, visit the following articles on GuruFocus:
GuruFocus Insider Research Part I: The Summary of Previous Research Results
GuruFocus Insider Research Part II: Can Aggregated Insider Trading Activities Predict the Market?
GuruFocus Insider Research Part III: Can Aggregated Insider Trading Predict the Market of Different Sectors?
The ratio climbed in the last two months, only at 0.6 in September, then almost doubled in October at 1.14. The financial sector reported more than 1,000 insider trades this month compared to its 517 trades last month, with the following companies experiencing the busiest activity: Inland Real Estate Corp. (IRC, Financial), Federal Agricultural Mortgage Corp. (AGM, Financial), Eaton Vance Corp. (EV, Financial) and Ladenburg Thalman Financial Services (LTS, Financial).
The oil and gas sector appears in second place, with a buy-to-sell ratio of 0.85, with 183 insider buys and 202 insider sells reported in November – a total of 385 altogether. The companies in the oil and gas sector that reported the most insider trading include Tesco Corp. (TESO), Halcon Resources Corp. (HK), EOG Resources (EOG) and NGL Energy Partners LP (NGL).
As seen in the chart below, the financial sector’s insider activity bears a striking correlation to the market trend of the Dow Jones U.S. Financial Sector ETF (IYF, Financial), its ratio exceeding 1 when the financial market was down, which usually reveals more purchases than sells, and vice versa when the market was at an all-time high.
Financials reached its peak a little over a year ago, peaking at a buy-to-sell ratio of 4.41, the same time that IYF experienced a slumping trend line, negatively falling to its two-year low later that year.
The comparison also applies to the S&P’s Financial Select Sector SPDR ETF (XLF, Financial) (shown below), which shows a trend line resembling the IYF, trending negatively in the August 2011 time frame before reaching a three-year low in October 2011.
XLF data by GuruFocus.comTo view a collection of insider trends per varying sector, visit GuruFocus Insider Trends. Also view the rest of the sectors’ November buy-to-sell ratios below.
| NOVEMBER INSIDER B/S RATIOS | ||
| B/S ratio | ETF | |
| Financials | 1.19 | 58.28 |
| Oil & Gas | 0.85 | 70.47 |
| Utilities | 0.49 | 85.7 |
| Health Care | 0.38 | 82.66 |
| Basic Materials | 0.37 | 66.12 |
| Consumer Goods | 0.33 | 74.15 |
| Industrials | 0.27 | 70.31 |
| Technology | 0.2 | 69.3 |
| Consumer Services | 0.18 | 85.02 |
About the GuruFocus Real Time Insider Buys/Sells Screener
Developed based on the advantageous findings from a three-part GuruFocus insider research, the GuruFocus Insider Buys/Sells Screener enables Premium Members to see various insider trends by sector, by market cap, by S&P500 companies, or certain combinations of the three.
Be amazed at the correlation between insider trading activity and the ups and downs of the stock market. View comparisons of specific sectors, with graphs containing insider buy-to-sell ratios alongside corresponding ETF market values. GuruFocus even provides specialized screens for CEO buys and sells, and CFO buys and sells, in addition to insiders.
GuruFocus’ long list of Premium Membership perks provides many opportunities to follow your favorite Gurus and stocks more closely. If you are not a Premium Member yet, we invite you for a 7-Day Free Trial.
To read more about related topics, visit the following articles on GuruFocus:
GuruFocus Insider Research Part I: The Summary of Previous Research Results
GuruFocus Insider Research Part II: Can Aggregated Insider Trading Activities Predict the Market?
GuruFocus Insider Research Part III: Can Aggregated Insider Trading Predict the Market of Different Sectors?
