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.
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