Corporate Insiders Shift From 'Buy' to 'Sell' as Bankruptcy Nears
A Wall Street Journal review of thousands of trades by insiders in their own company’s stock found the trades veering heavily toward selling rather than buying as bankruptcy filings drew nearer. We found that corporate insiders often shift from buying to selling their company’s stock as bankruptcy approaches. Our analysis suggests insiders might be privy to their company’s deteriorating conditions ahead of other investors. In the last three months before bankruptcy filings, insider stock buys dropped over 80%, while sales only slightly decreased....