April 24 (Bloomberg) -- Executives and insiders at U.S. companies are taking advantage of the steepest stock market gains since 1938 to unload shares at the fastest pace since the start of the bear market.
Gap Inc.âs founding family sold $45 million of shares in the largest U.S. clothing retailer this month, according to Securities and Exchange Commission filings compiled by Bloomberg. Daniel Warmenhoven, the chief executive officer at NetApp Inc., liquidated the most stock of the storage-computer maker in more than six years. Sales by the co-founders of Bed Bath & Beyond Inc. were the highest since at least 2001.
While the Standard & Poorâs 500 Index climbed 28 percent from a 12-year low on March 9, CEOs, directors and senior officers at U.S. companies sold $353 million of equities this month, or 8.3 times more than they bought, data compiled by Washington Service, a Bethesda, Maryland-based research firm, show. Thatâs a warning sign because insiders usually have more information about their companiesâ prospects than anyone else, according to William Stone at PNC Financial Services Group Inc.
âThey should know more than outsiders would, so you could take it as a signal that there is something wrong if theyâre selling,â said Stone, chief investment strategist at PNCâs wealth management unit, which oversees $110 billion in Philadelphia. âWhether itâs a sustainable rebound is still in question. Iâd prefer they were buying.â
Insiders Sell
Insiders from New York Stock Exchange-listed companies sold $8.32 worth of stock for every dollar bought in the first three weeks of April, according to Washington Service, which analyzes stock transactions of corporate insiders for more than 500 institutional clients.
http://www.bloomberg.com/apps/news?pid=20601213&sid=arl3VgxA0FAA&refer=home
Why are they selling ? I thought "the worst" is over...?
Gap Inc.âs founding family sold $45 million of shares in the largest U.S. clothing retailer this month, according to Securities and Exchange Commission filings compiled by Bloomberg. Daniel Warmenhoven, the chief executive officer at NetApp Inc., liquidated the most stock of the storage-computer maker in more than six years. Sales by the co-founders of Bed Bath & Beyond Inc. were the highest since at least 2001.
While the Standard & Poorâs 500 Index climbed 28 percent from a 12-year low on March 9, CEOs, directors and senior officers at U.S. companies sold $353 million of equities this month, or 8.3 times more than they bought, data compiled by Washington Service, a Bethesda, Maryland-based research firm, show. Thatâs a warning sign because insiders usually have more information about their companiesâ prospects than anyone else, according to William Stone at PNC Financial Services Group Inc.
âThey should know more than outsiders would, so you could take it as a signal that there is something wrong if theyâre selling,â said Stone, chief investment strategist at PNCâs wealth management unit, which oversees $110 billion in Philadelphia. âWhether itâs a sustainable rebound is still in question. Iâd prefer they were buying.â
Insiders Sell
Insiders from New York Stock Exchange-listed companies sold $8.32 worth of stock for every dollar bought in the first three weeks of April, according to Washington Service, which analyzes stock transactions of corporate insiders for more than 500 institutional clients.
http://www.bloomberg.com/apps/news?pid=20601213&sid=arl3VgxA0FAA&refer=home
Why are they selling ? I thought "the worst" is over...?