Insider Selling/Buying Ratio Moderates To Only 40.6x
Insider selling outpaced buying by "only" a factor of 41x (data from FinViz). The data was adjusted to exclude the $37 million purchased by Elevation Partners as part of the Palm follow on, as that transaction was likely premarketed and was designed to generate deal interest by the underwriter Goldman Sachs. Pro Forma for this purchase, there was $2.1 million in 24 insider buys versus $84.4 million in 139 insider sells. While sellers are still outpacing buyers by a material margin, the volume on both side of the equation is dropping dramatically (well, mostly the sellers). At some point once the selling is exhausted, a contrarian could say that the motivation to keep the market propped up could very easily disappear.