Wall Street Insiders Dump S&P Shares at Record High

Corporate America is sending a gloomy signal about the sustainability of the record rally in U.S. stocks, Natalia Kniazhevich reported for Bloomberg News.

Nearly 1,000 executives at roughly 6,000 U.S.-listed companies sold shares this month. (Photo: New York Stock Exchange)

Wall Street has kicked off earnings season on a strong note, helping push the S&P 500 Index to an all-time high this week. However, some of the market’s most informed participants appear to be stepping aside.

Nearly 1,000 executives at roughly 6,000 U.S.-listed companies sold shares this month, compared with just 207 who bought, resulting in the highest sell-to-buy ratio in five years, according to data compiled by Washington Service.

While it is difficult to determine whether factors beyond market performance drove insiders’ decisions, the cautious stance among corporate leaders—who arguably know their businesses best—raises concerns as worries swirl around lofty valuations, surging AI spending, and mounting global risks.

“The moves of corporate insiders have proven to be a powerful signal on forward returns of stocks,” said Joe Gilbert, a portfolio manager at Integrity Asset Management.