Displaying items by tag: insiders

(Los Angeles)

Tesla has been in a very rough patch recently, with shares dropping swiftly and deeply. However, where are things headed next? Well, an important “insider” indicator just flashed that you need to know about. Two Tesla directors have been heavily selling stock this year, showing that those close to the company are not bullish. Directors Buss and Gracias have sold nearly $47m of stock in 2019, and total sales by insiders are around $68m, almost 5x the total selling of last year.

FINSUM: We think this is quite a troubling sign and does not give us any conviction about a rebound.

(New York)

One of the best ways to pick stocks is to look at insider purchases. When those in-the-know on a company are buying stock with their own money, it is a probably a good time to pay attention. Well, one well-known but dormant stock (in terms of insider purchases) just saw a significant move—Goodyear. One of the rubber company’s board members just spent about $650,000 to buy 35,000 shares of the company. There has not been an insider purchase that large at Goodyear since at least 2004.

FINSUM: We obviously don’t know the catalyst for this buy, but the chatter about how tire companies will benefit in the long-term from self-driving cars (i.e. more miles driven because it is cheaper to keep the cars moving than park them) seems like a strong fundamental.