The latest data from TrimTabs shows classic late cycle behaviour with companies pounding out new security offerings to the public at the same time that their executives liquidated their personal holdings at the highest level of any September in the last decade. See Companies and insiders are dumping stock, while share repurchases sink:
“‘New offerings skyrocketed in September, suggesting U.S. companies are trying to take advantage of lofty market average before there is a more dramatic slowdown in the equity markets or the economy,” TrimTabs said in a research report to clients…
Corporate executives were also big sellers, as insiders unloaded $14.2 billion worth of their companies’ stock last month through Sept. 26, according to a TrimTabs analysis of Form 4 filings with the Securities and Exchange Commission. That’s the highest of any September in the past 10 years.
…September also marked the sixth month this year that insider selling has topped $10 billion, which is already the most months to cross above that 8-figure threshold in a year since 2006, TrimTabs said.
Meanwhile, overall corporate demand for shares, in the form of stock buybacks and cash mergers and acquisitions, has dropped over the past few months.”
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