In the past month, stock sales by insiders have surged, leading investors to wonder whether insiders believe recent stock rallies are transient. In fact, according to Barron’s Insider Transaction Ratio, the ratio of Insider Sales to Insider Buys is 33 – and any ratio above 20:1 is considered bearish!
TipRanks’ unique datasets help investors zero in on the truth about recent insider trading trends. Are the sales indicative of insider fears about their companies’ futures, or are they just a lot of noise? Our designation of trades as Informative or Uninformative, plus our insider rankings, give you invaluable information to make sense of insider trading trends.
Informative vs. Uninformative Sells
TipRanks’ algorithms regularly scan SEC filings to find and record all insider transactions. You can find all the information about insider trades on our Daily Insider Trading Tracker. We list the latest Buys and Sells by insiders, give you the value of the transaction, and include a link to the SEC form, so you can see it for yourself. Additionally, each stock has its own Insider page, listing each recent transaction and showing you the total value of insider transactions on that stock over the past three months. TipRanks also shows whether the overall insider sentiment on the stock, as indicated by recent Buys and Sells, is positive or negative.
Even more importantly, TipRanks makes this information infinitely more valuable by determining whether the transaction was Informative or Uninformative. For example, a Sell transaction made upon the end of a stock’s lock-up period would be Uninformative. Reviewing whether recent Sells on a stock are Informative or Uninformative gives you unprecedented information about how to interpret the Sells.
Nvidia (NVDA), for example, experienced a slew of insider sales lately: more than 20 insider Sells were made in the past three months, but only a portion of those, $191.6M worth of shares, were Informative Sells. TipRanks color-codes the Buys and Sells as Informative or Uninformative, so you can easily see which are worth your attention.
Insiders’ Performance
TipRanks offers an added unique feature to help you make sense of insider Sells: our insider rankings. Our algorithms figure out the performance of each insider, based on whether the stock rose or fell after the insider’s transactions. It’s easy for you to decide whether to follow an insider’s trades – just look at their star ranking. The top-performing insiders have five stars, the next have four stars, and so on. Those with over 3.5 stars are definitely worth a second look!
Browse our Top-Performing Corporate Insiders page to find the best-performing insiders, their success rates, and the average returns on their trades. One example is Michael Farkas, founder and board member of Blink Charging Co. (BLNK). Farkas made Informative Sells of BLNK shares worth $279.2M in the past three months. According to TipRanks’ ranking system, Farkas is a four-star analyst with a 59% success rate on his transactions. Based on that information, investors could decide to regard his Sells as significant and worth further research.
Best Insider Trading Website
Hands down, TipRanks is the best insider trading website. We show you all the insider trades, tell you whether the trades are Informative or Uninformative, give you the Insider Sentiment, and even rate the insiders, so you know which ones to follow.
When insiders Sells seem to be mounting, make sense of the data with TipRanks. As always, we level the playing field, giving regular investors access to data that can help them beat the markets!
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