Jan 20, 2023

Verity Head of Research: Insider Buying Data Cause for Caution as Earnings Season Ramps Up

Ben Silverman, director of research at Verity, joined BNN Bloomberg to discuss prominent insider buying and selling in the markets. Silverman notes a few companies that have had executives or directors buying a lot of shares, and talks about the consistency of insiders when it comes to calling U.S. market bottoms.

“Insiders since about 1975 in the U.S. have had a great track record calling market bottoms, which is why we’re a little concerned right now because we did not see the type of buying in 2022 that we would have expected. So with earnings ramping up, we’re cautious.”

Silverman also covered VerityData’s proprietary Cessation of Selling signal, in which insiders who regularly sell stop selling, a phenomenon recently found at Estee Lauder (NYSE: EL).

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