HomeBusinessCOMPANY MINTERS DUMEN Shares at record pace during the Rally of the...

COMPANY MINTERS DUMEN Shares at record pace during the Rally of the S&P 500

(Bloomberg) – The shares of American companies rose this week to a record, in which they apparently shake off concerns about rates, immigration and inflation. Nevertheless, business leaders do something that is definitely less bullish: they sell their shares at a rapid pace.

Most read from Bloomberg

A indicator of insider sentiment that reflects the number of buyers versus sellers, shows that there were only 98 companies where at least one insider bought the shares of the company this month until January 22, compared to 447, with at least one insider sold, according to collected data. by the Washington service. With a little more than a commercial week to go in January, that purchase sale ratio with 0.22 is currently on track to be the lowest in the figures that go back to 1988.

This amount of sales generally does not give confidence among investors, because it indicates that business leaders who lead the companies are not convinced about their own shares. Nevertheless, such signals must be taken with a pinch of salt, since there are many factors that can lead to a sale, including the general market performance, the share value and the personal reasons of the managers.

Apart from a natural season pattern in the pattern of prior knowledge, these were this time concentrated in the large technology companies that achieved huge profits in 2023 and 2024, says Mark Hackett, main market strategist at Nationwide.

See also  Transcript of the speech: Schmid

“After a huge run of two years in shares, especially in the area where the majority of sales takes place, it is normal that there is an increase in sales,” said Hackett. “It is important to pay attention, because this can indicate a decreasing confidence in the risk/revenue profile of the group of shares with high valuations; It is important not to respond because this can be part of risk management and possibly not reflect no lack of trust. ”

This explains why another series of data helps to paint a more complete picture of the sentiment that companies have for their own shares: the repurchase of corporate bonds.

Data from Birinyi Associates show that the return before January are at the strongest level since at least 1999. Large American companies, including General Electric Co., Citigroup Inc. and Netflix Inc. have announced plans to buy back shares this month.

According to Jeff Rubin, head of research by Birinyi, American companies have announced more than 48 billion dollars up to and including January 22, with which they are on their way to the strongest January since 1999, understood that the data reached.

- Advertisement -
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments