Insider sales by notable figures such as Jeff Bezos, Mark Zuckerberg, and Peter Thiel have been on the rise in the United States. This trend has caught the attention of portfolio managers at Aktia and S-Pank, who view these sales as a positive data point for investors to consider.
According to a report by Bloody, the ratio of insider sales to purchases has increased significantly in January-March. This has led to speculation in the media, including the Financial Times, about whether insider sales indicate potential price peaks in the market. Verity’s Vice President of Research, Ben Silverman, has expressed concern regarding insider sales as a negative data point for investors to consider.
Jeff Bezos sold 50 million Amazon shares for $8.5 billion in February, despite still owning a significant portion of the company’s shares. Mark Zuckerberg, CEO of Meta, has also been selling shares at an accelerating rate as the stock reaches all-time highs. Despite these sales by notable figures like Bezos and Zuckerberg, portfolio managers at Aktia and S-Pank do not see them as negative indicators for the companies’ future performance.
While some investment guidelines suggest that insider sales could signal a need for investors to sell, portfolio managers like Juuso Kenkkilä and Antti Raappana believe that the founders’ sales are not necessarily indicative of negative information. They suggest that the timing of the sales may reflect a perceived increase in share valuations rather than a decline in company performance.
Despite concerns raised in foreign media about an increase in insider sales and their potential impact on market prices, portfolio managers remain optimistic about the long-term prospects of companies like Amazon and Meta. While short-term optimization may be a consideration for insiders like Bezos and Zuckerberg, portfolio managers emphasize the importance of evaluating companies’ performance over time when making investment decisions.
In conclusion, while there have been recent increases in insider sales among notable figures such as Jeff Bezos and Mark Zuckerberg, portfolio managers view these transactions positively when considering long-term investments with Aktia and S-Pank alike.
