Why Company Insiders are Selling Off Their Stock At Record Rates

Executives are cashing out. TrimTabs Investment Research reveals $5.7 billion dollars of stock sold by executives in September this year, a ten-year record. Similarly August reached a ten-year record with over $10 billion in stock sales. May and June saw $8.2 and $9.4 billion sold respectively.

It becomes very easy to see sell-offs by executives are accelerating through the year. In the second quarter of this year, massive stock buybacks were announced, $436.6 billion worth of them in fact. So many buybacks occurred some companies even borrowed money to make it happen.

John Mousseau, President and CEO of Cumberland Advisors, said in July of 2018 that "They're buying back from the front door, and shoveling shares out the back door. It would be like going on TV to tell everyone what stocks we like, and then selling them."

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