Tag Archives: Insider Trading

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Cumberland Advisors Market Commentary – Insider Trading – the Case of Energy

Author: Leo Chen, Ph.D., Post Date: September 14, 2020
Cumberland Advisors Market Commentary - Insider Trading – the Case of Energy

Our last commentary on insider trading studied post-insider-purchase-spike (PIPS) market performance (https://www.cumber.com/cumberland-advisors-market-commentary-insider-trading-what-does-it-tell-us/). We found that the 6-month market return is 13.54% on average after the insider buy/sell ratio rises above 1. Today we will demonstrate the PIPS effect using the Energy sector as an example. Undoubtedly, corporate insiders possess an informational advantage over outsiders. The […]

Barron’s – Insider Buying’s Positive Message

Author: , Post Date: August 27, 2020

Excerpt from Barron’s commentary compendium. Aug. 28, 2020 – This commentary was issued recently by money managers, research firms, and market newsletter writers and has been edited by Barron’s. In the U.S. equity market, a popular insider-trading gauge is the Insider Buy/Sell ratio, which is the aggregate insider purchase over insider sale. Normally, the ratio […]

Cumberland Advisors Market Commentary – Insider Trading—What Does It Tell Us?*

Author: Leo Chen, Ph.D., Post Date: August 26, 2020
Market Commentary - Cumberland Advisors - Insider Trading (Leo Chen)

Insider trading often refers to acting on material nonpublic information. However, when company employees buy and sell their own stocks, it is also called insider trading, which is permitted by the SEC. We will only discuss the second type of insider trading today. As many investors have wondered, is it a fair game for outsiders […]