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Insider sales in the US by executives have hit their highest level for any quarter in the last two decades as record numbers of senior figures in the corporate world unload shares in their companies amid a post-election stock market boom, the Financial Times reports, citing data from VerityData.
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Senior execs from some of Wall Street’s most recognizable stocks have been getting in on the action, including Tesla Board Director Kathleen Wilson Thompson, who has sold some USD 34.6 mn worth of the EV maker’s stock — which has increased in value by over 37% since election day, in part due to the CEO’s involvement with the incoming administration. Four insiders at Goldman Sachs have sold more than USD 28 mn in shares since election day, with the firm’s share price rising 12% over the same period on the back of an expected uptick in mergers and slashing of regulation under the approaching Trump presidency.
One of the biggest gainers was ironically a top Harris donor, with the paper detailing how Palantir Technologies co-founder Alex Karp has offloaded some USD 900 mn worth of stocks since 5 November. Karp saw his company’s stock soar as promising financials released the day before the election coincided with the post-election rally, pushing his company’s stock up 48% since then.
The last time insider selling versus buying at US financial institutions was this high was when Donald Trump was first elected president, all the way back in November 2016.
The most recent post-Trump victory surge follows three below-average quarters in terms of insider selling volumes, VerityData Vice President of Research Ben Silverman said.
Some think that uncertainty, rather than optimism, may be driving some of the sales, say some market observers, including Texas Christian University professor Swami Kalpathy. “There are going to be some losers (and) some industries could get hurt badly,” from Trump’s proposed tariffs, Kalpathy tells the paper, adding that “We have had a good run up. But the other story is that maybe the executives are expecting revisions in equity prices.”
MARKETS THIS MORNING-
Asian markets are starting out the day mostly in the red during early trading this morning, with Japan’s Nikkei currently down 0.4%, along with Hong Kong’s Hang Seng and the mainland’s Shanghai index both in the red by 0.1%. Meanwhile, Korea’s Kospi is up 0.5%.
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TASI |
11,876 |
+0.4% (YTD: -0.8%) |
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MSCI Tadawul 30 |
1,492 |
+0.3% (YTD: -3.8%) |
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NomuC |
29,571 |
-0.1% (YTD: +20.6%) |
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USD : SAR (SAMA) |
USD 3.75 Sell |
USD 3.75 Buy |
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Interest rates |
5.25% repo |
4.75% reverse repo |
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EGX30 |
30,688 |
-0.6% (YTD: +23.3%) |
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ADX |
9,426 |
+0.4% (YTD: -1.6%) |
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DFM |
4,732 |
+0.4% (YTD: +16.6%) |
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S&P 500 |
5,917 |
+0.4% (YTD: +24.1%) |
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FTSE 100 |
8,099 |
-0.1% (YTD: +4.8%) |
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Euro Stoxx 50 |
4,751 |
-0.8% (YTD: +5.1%) |
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Brent crude |
USD 73.31 |
+0.01% |
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Natural gas (Nymex) |
USD 2.96 |
-1.4% |
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Gold |
USD 2,635.70 |
+0.8% |
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BTC |
USD 92,326.30 |
+1.2% (YTD: +118.0%) |
THE CLOSING BELL: TADAWUL-
The TASI rose 0.4% yesterday on turnover of SAR 6.1 bn. The index is down 0.8% YTD.
In the green: Burgerizzr (+10.0%), Cenomi Retail (+8.3%) and DWF (+6.9%).
In the red: Albaha (-9.7%), Care (-3.9%) and SRMG (-3.5%).
THE CLOSING BELL: NOMU-
The NomuC fell 0.1% yesterday on turnover of SAR 82 mn. The index is up 20.6% YTD.
In the green: Knowledge Tower (+9.6%), Alqemam (+9.1%) and Horizon Food (+7.7%).
In the red: Amwaj International (-8.2%), Sure (-4.9%) and AZM (-4.8%)
