High insider-selling levels tend to occur near the end of earnings season since executives aren’t allowed to buy or sell stock ahead of announcements, said Ben Silverman, director of research at Seattle-based InsiderScore.com. Sales of restricted stock awards at the beginning of the year may also be adding to the tally, he said.
“In general, insiders don’t buy the rally anyway,” Silverman added. “People sell for a number of reasons. You can only buy for one. The selling is not predictive in that respect.”