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Insider trading wrap-up: Week ended June 17, 2011

|Includes:AHGP, AZO, BBEPQ, BNHNA, BZC, CF, GOOG, International Coal Group, Inc. (ICO), INTU, RFP, SGMS, TZOO, VMW, WMG, YONG

In the week ended June 17, we recorded open-market insider activity at 431 companies having a total value of $2.4 billion. This is 9.6% lower than last week, and 63.1% higher when compared to activity a year ago. Purchases accounted for 24.1% 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 3.14, down slightly from a previous reading of 3.27. The 4-week moving average has also fallen below 4. While we would normally interpret this as a bullish signal for the market's performance in the coming weeks, insider trading activity and technical indicator patterns eerily resemble readings from summer 2007. The underlying macro environment also rhymes with the period, but instead of an overhang of subprime mortgages, we have a looming default from Greece (and possibly other peripheral countries in the Eurozone). Taking all of these factors into account, we believe that equity prices will remain under considerable pressure, and gains, should they arise in the near run, will be short-lived. 

BlueTrader Insider sell-to-buy ratio chart - June 17, 2011

For the 10th consecutive week, activity was the most concentrated in the Technology sector, where 180 insiders filed trades having an aggregate market value of $229.8 million. Rounding out the top three sectors were Financials (173 trades for $40.5 million) and Health Care (109 trades for $44.4 million). There was a large spike in activity in the Basic Materials sector, where the number of trades filed was up 136% on the previous week.

 

The largest open-market transaction of the week was in MCP stock, where 10 insiders sold 24,863,539 shares for a total of $1.3 billion. The biggest buy last week was for 32,461,900 shares of ICO, worth $473.9 million. 

Largest insider buys of the week

BlueTrader large insider buys - June 17, 2011

Largest insider sales of the week

BlueTrader large insider sales - June 17, 2011