Monday, February 3, 2020

Large corporate insider sales last week

Today starts a transition from a bi-monthly, by subscription only, ECONOMIC LOGIC newsletter, to a free blog. 

So, instead of getting insider trading information every two months, I'll provide something every week.

The next (March April 2020) ECONOMIC LOGIC newsletter will be the last one, in the form of a newsletter, after writing a financial newsletter since 1977. 

Today I'm presenting a list of insider trades from last week, for trades of at least $2 million, where the insider changed his or her total position by at least 20%.

Once again (in January 2020), 
NOT ONE corporate insider 
purchase of company stock
met these criteria, 
only sales:


Texas Instruments:
TXN 1/29/20 sale -- $26.4 mils.(sold 23% of total position)
TXN 1/29/20 sale ----   2.7 mils. (sold 25%)


Tandem Diabetes Care:
TNDM 1/29/20 sale -- 3.8 mils. (sold 94%)


Lockheed Martin:
LMT 1/29/20 sale --  4.2 mils. (sold 96%)
LMT 1/29/20 sale --  9.7 mils. (sold 36%)
LMT 1/29/20 sale --  2.8 mils. (sold 89%) 
LMT 1/29/20 sale --  3.0 mils. (sold 95%)


Graco:
GGG 1/30/20 sale -- 2.9 mils. (sold 47%)
GGG 1/30/20 sale -- 2.5 mils. (sold 64%)


Rexnord:
RXN 1/30/20 sale -- 4.4 mils. (sold 82%)
RVN 1/30/20 sale -- 3.7 mils. (sold 69%)


The very high stock valuations, 
detailed with all the charts in the last ECONOMIC LOGIC newsletter, 
http://elblog2019.blogspot.com/2019/07/monthly-economic-data-releases-full-list_18.html
tell us the ten year return on stocks bought now is likely to be very low, perhaps even zero.

But valuations alone 
do not tell us WHEN 
to exit the stock market.

Insiders selling large portions of stock holdings OF THEIR OWN COMPANIES, however, are an intermediate term stock market timing indicator -- and likely to be a good short term indicator for the specific companies whose stocks are being sold.

I keep track 
of insider trading 
as one of my seven 
STOCK  MARKET 
TIMING  INDICATORS.

For the last newsletter, there was the most bearish corporate insider selling I have ever seen: 100% sells, and no buys, 
for trades of at least $1 million, where the insider sold at least 15% of his or her holdings (or the insider increased holdings by 15% or more).

I get insider trade 
information 
at the website below, 
and then I exclude trades by "10% owners", 
which do not name a specific corporate insider. 
     http://openinsider.com/latest-insider-trading


I may include "10% owners" in the future.  

I want trades made by people 

with insider knowledge 
of how a company is doing. 


Right now, 
I don't know where 
to get details about 
the "10% owners" (for free).

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