With unprecedented macroeconomic events absolutely thrashing the stock market recently, one may notice that many of the traditional financial metrics which used to work simply don't anymore. I think insider transactions, and specifically insider selling, certainly falls within this grouping, as useful metrics to gain financial insight with respect to sentiment among key parties.
Right now, the sentiment of the stock market is all over the place, and this sentiment varies widely across different investors based on differing risk profiles, general sentiment orientations, and personal situations.
I don't think investors honestly ought to pay too much attention to the insider transactions for the next few months, until we get some semblance of “new normal” established.
I think market participants, including insiders, will have widely divergent views with respect to future stock market performance which will be conveyed in such transactions, limiting the amount of useful information to investors.
As always, please remember to consult with a certified financial planner and do your own research before making investing decisions. Insider buying and selling activity is not necessarily indicative of the future performance of a given company stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision-making.
