insider buying among Wall Streeters has reached a 13-year high. In fact, January marked the first time since 1995 when CEOs and other senior corporate officials bought more of their own company’s shares than they sold. “Insider” purchases totaled $683 million last month in spite of the S&P’s 6% decline.
The last time insiders were net buyers, in January of 1995, the S&P rallied 34% in less than a year. What’s more, of the last seven times insiders bought more than they sold -- all occurring between 1988-1995 -- the S&P rallied an average of 21% in the following 12 months.
Among all the market’s sectors, net buying was most significantly found in communications, industrial, energy, materials and consumer cyclical groups.
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