Cincinnati Financial

Inside Scoop: Executives Still Snapping Up Their Own Stock

Many investors have been shaken by the stock market’s volatility over the past two months.

But the steep slide and subsequent market swings have stirred a key constituency of buyers: company insiders.Since the beginning of August, executives have snapped up shares of their own companies on the cheap, and in record numbers. Many market watchers say that’s a good sign for the market going forward.“I think the fact that insiders stepped in with such strong enthusiasm is a very bullish sign,” says David Coleman, editor of Vickers Weekly Insider, which has tracked insider transactions since 1974.Coleman says last month that their index hit the highest level of buying since 1998: “That lasted for a period of weeks and we’re still well within bullish territory.”Skeptics point out the pace of buying has dropped sharply from those extremes, but Coleman says executives are still buying when others are selling. “I would definitely expect to see insiders continuing to buy dips as they have the pas...

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