Are Insiders Trying To Tell Us Something?

Insider selling has surged to highs of the past few months, with $662 million in stock sold last week, as opposed to just $1.6 million in stock purchased. This information comes via Bloomberg and

A company insider will buy stock only for one reason, because they believe it is undervalued and see the potential to make money. Selling occurs for a wide variety of reasons, whether it be tax purposes, options expiration, etc. Yet, this ratio is a little bit troublesome if you are bullish on the markets, with insiders selling at a staggering 423 sales to every buy. It's something to think about, especially considering the game changing events happening this week. On top of this tremendous insider selling, the VIX has risen 13% in the past week or so, and there is increase put buying, indicating traders are increasingly looking to protect profits after a near 10 week run up. It's definitely something to think about.