In a move that has Wall Street analysts nodding approvingly while retail investors check their couches for loose change, corporate executives have launched a buying frenzy of their own companies’ shares at the quickest pace since May.
The surge comes as the S&P 500 suffers its ugliest stretch since spring, down 2.9% this month and barreling toward the worst November since 2008, when flip phones were still considered cutting-edge technology.
Executives apparently decided that if everyone else is panic-selling tech stocks over AI bubble fears, this is the perfect time to load up the cart.
Data from the Washington Service reveals the insider buy-to-sell ratio has climbed to a respectable 0.5, meaning for every two executives cashing out for a new yacht, one is quietly adding shares—hardly a stampede, but enough to raise eyebrows in a market where rallies keep getting politely shown the door by midday.
These aren’t impulsive trades fueled by too much coffee. As Jay Hatfield of Infrastructure Capital Advisors noted, insiders are long-term believers, not day traders chasing memes.
Hatfield himself piled into Marvell Technology after its guidance landed with all the enthusiasm of lukewarm oatmeal.
One fund manager even placed fresh buy orders Wednesday morning, proving that nothing says confidence like purchasing more of something that just disappointed the room.
This isn’t their first rodeo. Back in April, insiders correctly sniffed out the bottom after President Trump’s tariff bombshell triggered a selloff.
They bought heavily then, right before the market delivered its biggest one-day gain since the 1980s—because apparently executives have a better crystal ball than the average algorithm.
Trading desks are echoing the optimism. JPMorgan dubbed the drop a mere “technical washout,” the financial equivalent of calling a hurricane a light drizzle.
The S&P 500 rewarded that cheer Wednesday by closing 0.4% higher, its first upbeat session in days, as if the index finally remembered how to smile.
Sentiment got another boost after hours when Nvidia delivered a revenue forecast that didn’t disappoint, calming nerves that the AI spending spree might end faster than a viral dance trend.
Corporate profits certainly helped the mood. Third-quarter earnings smashed expectations, hitting record highs like they were going out of style.
Matt Lloyd of Advisors Asset Management pointed out profits are running at peak levels, making the current dip feel like finding a designer suit at a thrift store.
Insiders, sitting in the best seats for their companies’ future, tend to view shares through lenses that are pleasantly optimistic.
Brian Jacobsen at Annex Wealth Management called net buys a bullish signal, though he admitted the glasses can be rose-tinted.
Yet even skeptics concede the logic. Chris Zaccarelli of Northlight Asset Management explained there are countless reasons to sell—diversification, taxes, that sudden urge for a private island—but only one solid motive to buy: genuine belief the stock is cheaper than a value meal.
Insiders might not time the broader market perfectly. Their crystal ball occasionally fogs up on macro events.
Still, when they reach for wallets instead of sell buttons, investors take notice.
The S&P 500 remains down sharply this month, but executives seem to be voting with their brokerage accounts.
Other dip buyers have been skittish, watching intraday bounces evaporate like morning dew.
Insiders, however, appear unfazed, treating the pullback as a polite invitation to acquire more at discount prices.
Whether this marks another savvy bottom call remains to be seen.
For now, the executives are shopping while others window browse nervously.
In a market full of hesitation, their confidence stands out—like showing up to a fire sale with a bigger truck.
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