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Insider Weekends – May 4, 2012

  • May 5, 2012

Welcome to edition hundred of Insider Weekends. Insider buying increased with insiders purchasing $59 million of their stock last week compared to $7.9 million in the week prior. Selling also increased with insiders selling $1.58 billion worth of stock last week compared to $1.38 billion in the week prior.

Sell/Buy Ratio: The insider Sell/Buy ratio is calculated by dividing the total insider sales in a given week by total insider purchases that week. The adjusted ratio for last dropped down to 26.7. In other words, insiders sold almost 27 times as much stock as they purchased. The Sell/Buy ratio this week compares favorably with the week prior when the ratio stood at 174. We are calculating an adjusted ratio by removing transactions by funds and companies and trying as best as possible only to retain information about insiders and 10% owners who are not funds or companies.

We wrote the following about the big spike in the ratio last week,

“Interestingly the last time the ratio was this high was almost a year ago on April 29, 2011 when the ratio spiked to 186.8. The S&P 500 dropped for six consecutive weeks from 1363.61 to 1270.98 following that spike.”

The S&P 500 registered a loss of 2.44% last week and if Friday’s close is any indication, we might continue to see weakness ahead.

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