BlueTrader's  Instablog

In the week ended June 10, we recorded open-market insider trading activity at 423 companies having a total value of $2.7 billion, of which $1.8 billion was at a single company (AVGO, see below). The total dollar value is 6.2% lower than last week and 185.4% higher when compared to activity a year ago. Purchases accounted for 23.4% of all open-market trades last week. Our insider sell-to-buy ratio, which excludes derivative conversions and certain other types of transactions, ended the week at 3.27, down from a previous reading of 6.17. The 4-week moving average has also moved comfortably into neutral territory. Generally, a sell-to-buy ratio below 4 is considered to be a bullish indicator, while readings above 7 are bearish. It is worth noting, however, that the decline in the ratio was due entirely to a drop in insider selling, not an increase in insider buying. In fact, there were only half as many insider buy transactions during the week compared to 52 weeks ago. We remain cautious on equities in the short term as macro headwinds, weakening fundamentals, and a shaky technical picture are likely to continue weighing on stock prices.


 

For the 9th consecutive week, activity was the most concentrated in the Technology sector, where 186 insiders filed trades having an aggregate market value of $2.2 billion. Rounding out the top three sectors were Financials (176 trades for $50.7 million) and Consumer Discretionary (117 trades for $174.9 million).

The largest open-market transaction of the week was in AVGO stock, where 5 insiders sold 54,459,100 shares for a total of $1.8 billion. The biggest buy last week was for 4,521,800 shares of BRNC, worth $49.7 million.

Largest insider buys during the week