Executives cash out as stock markets hover near record peaks
Stock markets remain near record highs, but economic data still lags behind pre-pandemic levels. Investors are now watching the moves of company insiders for clues on what comes next. Recent trends show executives on both sides of the Atlantic selling shares at elevated prices.
In Germany, the Insider Barometer dropped by nine points last month, reaching a level of 100—a rare sell signal. Olaf Stotz, a professor at Frankfurt School of Finance & Management, tracks these transactions for Handelsblatt. The decline follows months of similar trends, with executives locking in profits even during the peak of Germany’s COVID-19 crisis.
Across the Atlantic, U.S. insiders have been net sellers since May. High-profile sales include Douglas Bettinger, Lam Research’s CFO, offloading shares worth around $6 million. Other notable transactions came from an Astera Labs insider ($668,477), an Allstate executive ($3.58 million), and Anthony J. Recupero, President of Commercial Operations at Si-Bone ($67,000). These moves align with a broader correction in U.S. markets, which saw a sharp downturn in early September.
Despite the rally since March, the current Insider Barometer suggests stock performance may mirror other asset classes over the next three months. Many investors are now looking to insider behaviour for hints about future market direction.
The recent sell-off by executives signals caution among those with direct knowledge of company prospects. With stock indices near all-time highs but economic recovery still uneven, insider transactions are being closely monitored. The next three months could reveal whether this trend reflects broader market shifts.
