Insider Trading
According to the Citi equities team, insider buyers and sellers have taken a step back since the 2023 stock rise.
The Citi equity team has found that insider buyers and sellers have shifted back since the 2023 stock rally. Historically, both buying and selling have had a relationship to index level forward performance. Over the last ten years, there was a strong +0.51 correlation between the number of insider buyers and 12M forward returns.
However, the correlation for insider sellers is weaker at -0.17. This mixed signal suggests lower but positive forward return expectations. The team screened companies with the largest amount of insider buying/selling as a percentage of market cap over the past six months, focusing on open market buys/sales. The data reflects only open market buys/sales, with the trend or deviation from average being more important than the absolute number. Most of the higher insider buys are in sectors outside of Tech, which contrasts with many of the top sales.
Top 20 inside buyers
VF Corp (VFC) insider purchases percentage of market cap 0.033%
Carnival Corp (CCL) 0.029%
Enphase Energy (ENPH) 0.027%
DENTSPLY SIRONA (XRAY) 0.013%
Allegion (ALLE) 0.012%
Air Products and Chemicals (APD) 0.010%
Northern Trust (NTRS) 0.010%
Charles River Laboratories (CRL) 0.010%
AES (AES) 0.009%
Align Technology (ALGN) 0.009%
Insulet (PODD) 0.009%
Everest Group (EG) 0.009%
Keurig Dr Pepper (KDP) 0.008%
CenterPoint Energy (CNP) 0.008%
Caesars Entertainment (CZR) 0.007%
Fifth Third Bancorp (FITB) 0.006%
FMC (FMC) 0.006%
Zions Bancorp (ZION) 0.005%
Illumina (ILMN) 0.004%
Qorvo (QRVO) 0.004%
Top 20 inside sellers
NVR (NVR) insider sales percentage of market cap -0.922%
Airbnb (ABNB) -0.567%
Monolithic Power Systems (MPWR) -0.471%
Amazon.com (AMZN) -0.467%
Royal Caribbean Cruises (RCL) -0.405%
Palo Alto Networks (PANW) -0.347%
Walmart (WMT) -0.331%
Textron (TXT) -0.329%
Teledyne Technologies (TDY) -0.310%
Tyler Technologies (TYL) -0.291%
Salesforce (CRM) -0.288%
Jabil (JBL) -0.278%
Charter Communications (CHTR) -0.270%
Snap-on (SNA) -0.236%
SBA Communications (SBAC) -0.225%
Seagate Technology (STX) -0.222%
Loews (L) -0.222%
AutoZone (AZO) -0.203%
Motorola Solutions (MSI) -0.188%
FactSet Research (FDS) -0.176%
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