Insider Observations

Insider trading volume this past week inched higher, with the uptick in selling outpacing that of insider buying. As a result, the Sell/Buy Ratio deteriorated slightly (S/B 1.50 which is 3 sells for every 2 buys) but remains in a neutral range.

The next few weeks should show dramatically increased volume and the S/B ratio will change based on this new data.

We upgraded three stocks this past week and for the entire October, we upgraded a total of just 9 stocks, downgraded 3. This recent data is too limited to draw major conclusions regarding insider preference by sector or industry.

Insider trading data over the next month will be very interesting to observe. The volume will be heavy and we will likely get clues as to how insiders view their stock valuations vs. business prospects in the quarters ahead. Based on the earnings reports so far, companies are facing supply challenges, whether labor or materials, with a backdrop of strong demand. Insider activity after these earnings reports might tell us if insiders are more worried about their supply-side issues, or enthusiastic about the demand.

This is a short summary of our Highlights report for the US market which we send to our clients every Monday. If you are interested in it, please, email us to sales_admin@smartinsider.com or fill in the Contact form.

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