August was a turbulent month for the stock market. Market indices declined all across the globe as they had to process negative news regarding a possible no deal brexit and the US China trade war. As the market sentiment turned negative, one group of market participants turned positive as Helene Meister, columnist at realmoney.com, noticed.
Insider Ratio pic.twitter.com/X7jSYc5cIL
— Helene Meisler (@hmeisler) August 31, 2019
The US insider Sales-Buy Ratio enters a bullish area and flashes a buy signal and so does the European Market, as published in a Bloomberg news story a few days later.
An interesting article to go with the chart.https://t.co/WIR3MDHOf2
— Helene Meisler (@hmeisler) September 3, 2019
Insiders are contrarian by nature and they do possess more information than the average analysts or institutional investors.
Though the prices of equity markets dipped globally, 2iQ observed the European insider buy-to-sell ratio nearly tripled in August reaching 3.4 as compared to 1.1 in July. Currently the September insider-buy-sell ratio is even more bullish with 7.3 although it’s too early to tell where it will end.
Patrick Hable, the managing partner at 2iQ stated that in the month of August a lot of insiders buying activity in Europe and the US was witnessed. By comparison, in December 2018 when the European insider buy ratio was bullish at 8.8 the STOXX600 rose 16% in the following four months.
Look Who's buying This Dip?#InsiderBuying#2iQ
— 2iQ (@2iqresearch) September 3, 2019
Insiders buying the dip. Do they know better?https://t.co/NWytT3yIAT pic.twitter.com/Nf7q8843s3
The Bloomberg article stands in contrast to an article published by CNN where they say US corporate insiders are selling. We fail to reproduce the huge sell volumes mentioned in the article.
Yet CNN says insiders are selling.https://t.co/uNqqbuMon0
— Helene Meisler (@hmeisler) September 3, 2019
Founded in 2002 at the Frankfurt University business incubator, 2iQ has become a leading provider of insider transaction data with global coverage of over 60,000 stocks. The data is collected in realtime with an unmatched quality and historical breadth. 2iQ global data and analytics are available on Bloomberg, Factset, Wharton Research Data Services, Liquidnet, Quantopian and on other platforms (TBA). Top hedge funds, quantitative portfolio managers, risk provider and asset managers leverage 2iQ’s products and services. The company has offices in Frankfurt, London, Sofia, Bucharest and Lahore with 80 employees.
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