Insider Selling To Buying Update: 1,169 To 1

Tyler Durden's picture

In this week's update of "insiders selling to idiots", we find that the ratio of shares sold-to-bought by insiders is once again in the four digit range: 1,169 to 1 to be specific. In the past week, insider buying in S&P 500 companies amounted to only $286,000, the bulk of which was in MEMC (WFR). As for the selling: well, it appears ORCL insiders just can't wait to dump as much as they can, as fast as possible. Oracle was promptly followed by such overpriced stalwarts as Google, Marriott, Autozone and Salesforce. We wonder if these insiders provide direct or indirect kickbacks to the HFTs who keep bidding the stock up at incremental penny losses, yet are fully compensated for "providing liquidity" by the exchanges in the good ole' liquidity rebate system. The silver lining: this certainly is an improvement on last week's 2,341-1 ratio. Perhaps even the idiots are getting skittish about owning stocks without having access to the Fed's backstop facilities. Also, keep in mind that the primary dealers have about $60 billion in Bills to repurchase past the End of quarter window dressing. Unfortunately, for the players in the hot potato game, this capital can only come from stock sales.

For those who believe last week's data is an outlier, here is the weekly selling to buying ratio over the past month:

Source: Bloomberg

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unwashedmass's picture


DDR....i've thought the same thing about that...sleepy stock, traded about a million shares a day until last year or so....that's when they got a new CFO...from Goldman, suddenly its trading 3-5 million per day....

i mean, who are we kidding here....

JW n FL's picture
by Let them all fail
on Mon, 10/11/2010 - 11:05

Why the discrepancies Tyler, one of these two is not doing a correct analysis...


Let them all fail,

Thank You for the read! Nice Grab! Keep up the Great Stories Please!

Sincerely, JW

system failure's picture

The spread range on the US dollar today is sickening. It should have been down at least .25% to .80% by now. I cannot believe UUP has a 1 cent spread so far. WTH is going on? 

snowball777's picture

Let there be no mistake that this massive dumping is tantamount to a banker raiding the vault before he knows the panic will hit and represents no less a theft of savings from the middle class.

Worry, dickheads; Bali isn't big enough to hide heads like yours.

system failure's picture

We will put the banksters on Jeckyl Island where they got their start.

Clark_Griswold Hedge Mnger's picture

Whats the Pomo schedule for this week?

Atomizer's picture

New schedule will be released at 2 PM on October 13th.

yabyum's picture

The last rape before moving to Paraguay. Thanks folks, you can run but, you can't hide.

wiskeyrunner's picture

I have not seen volume this light since 4th of July.

system failure's picture

Tis Columbus Day, but you are right, it is pretty sad when nobody wants to play with the banksters on thier playground anymore. That is what happens when we play games with them and the banksters want to cry "do over" and/or make up the rules while we play always in favor of them of course. Eventually nobody wants to play with them anymore and they are sad and will have their cronie washington puppets force us to give up our 401k and retirements to them as well. And if that becomes the case, I will say feed me and take care of me bank buddy.

quasimodo's picture

286 large? LMAO, utterly PATHETIC


A baited banker thus desponds,
From his own hand foresees his fall,
They have his soul, who have his bonds;
'Tis like the writing on the wall.
John McCloy's picture

And the market gravitates higher. What kind of leverage are these trading desks utilizing to keep this up? This is the kind of recklessness we are permitting to reward the same reckles. Malinvestment that cost taxpayers trillions?

firstdivision's picture

Does anyone know of a graphic showing the ratio over time, or at least a place that has the data points?

cowdiddly's picture

No worries. Just insiders selling a few backdated options. And you thought the money was going to trickle down to the shareholders? LOL

pyite's picture

The ratio is 1/2 what it used to be.  Recovery here we come!

Ivanovich's picture

More good news for stocks, as they head deeper into multi-month highs today.

Yikes's picture

It's year end tax planning to a certain extent.  They know the capital gains tax is going up so they're dumping while the going is good. If my premise is correct, this will continue until year end, possibly accelerating, and then fall off after the first of the year.

Time will tell.

Midas's picture


Good theory, but no one here is blaming them for dumping stocks.  I know i've dumped 80% of mine in the last month.  What I want to know is:  Who is driving the market up with all this selling taking place? 

OpenEyes's picture

Exactly what I was wondering.  If Treasury is indeed buying equities via POMO, then this is nothing short of a gov't-to-insider payoff.  With a small (and dwindling) pool of retail investors, who's buying my stock if I'm an insider wanting to get out at a smallish no-name company?  I mean, we can't let sell orders have no bidders right?

ILikeBoats's picture

I was going to say that ORCL just bought Sun a few months ago and I would expect that some of the shares sold would be from Sun, now ORCL insiders who got the shares.  However looking over the list of insider transactions I can find, that is not the case.

gwar5's picture

Yes, that type of insider selling certainly takes the uncertainty out of the market. It's all down.

the rookie cynic's picture

Fed buying, POMO juicing, Algo and HFTs revving. Everyone else selling or fronting QE2. Throw out fundamentals or technical analysis. Dow up, dollar down. This is all phony baloney.

michigan independant's picture

The 2010 deficit was equal to 8.9 percent of gross domestic product (GDP), CBO estimates, down from 10.0 percent in 2009 (based on the most current estimate of GDP). The 2010 deficit was the second-highest shortfall—and 2009 the highest—since 1945

His Dudeness's picture

$332, 101,829        September 10: 650-1

$411,077,739        September 17: 290-1

$417,594,727        September 17: 290-1

$414,489,481        October 1: 2,341-1

$338,482,737        October 8: 1,169-1


Anyone have any info on previous selling amounts at other times? Is there a priced-in weekly limit that the market can handle without bring the market down, like if that's even possible anymore?

WaltzTangoFoxtrot's picture

It's obvious that in some part, the insider selling is two-fold:

1. exercise and trade out portions of stock options while they are in the money

2. do so before the capital gains tax rises

Separately, but related, I suggest that there could be more individual stock sales for tax purposes.  An individual can sell for a capital gain in 2010, and take the lower capital gain tax for 2010.  Then they can repurchase new shares in 2011 thereby setting a new basis for capital gains calculation for 2011 and beyond.  If the capital gain tax is not reset for 2011, then the treasury gets a premature boost.  

Tax advisors will be watching the lame duck congress to see what happens for 2011 tax policy.  As such, December tax maneuvers could get interesting for the market. 


Saxxon's picture

Yes, however they are also not buying in droves which means something.  Their purchases are astonishingly tiny, like the Nepalese stock market or something . . . is there a calendar/tax factor there as well?

WaltzTangoFoxtrot's picture

Good question.  I propose one reason.  

Exercised options that are not sold do not appear on this list as a buy because they are already "issued," so it is impossible to claim that no one is "buying."  One may be selling a portion of an options stake to fund the entire purchase, while leaving the balance in hand.  I suggest that looking at SEC quarterly reports will bear this out when they are filed, and that insider holding percentages will increase. 

Apostate's picture

So, sell stocks, buy gold by the ton, hire a small army of mercenaries?

Grand Supercycle's picture

S&P500 Financials index has not been bullish for some time. This is a warning.

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