Corporate executives have this month bought shares in their companies at a rate not seen since the early days of the Covid-19 pandemic in what some Wall Street analysts said was an encouraging sign for the US stock market.
Between the start of the month and May 24, insider buying at S&P 500 companies has been the strongest since March 2020, according to figures from VerityData. For the broader Russell 2000 index, there have been more insider buyers than sellers this month for the first time since March 2020, VerityData said.
Despite retail investors pulling out of the stock market and the looming threat of a slowdown or recession, “corporate insiders are holding a non-consensus view across most sectors and [are] actively buying the dip”, analysts at JPMorgan said in a May 27 note, adding that the share purchases were encouraging for the direction of stock markets.
@Via FT (non-paywall link at archive)
Views: 4