Insider stock buys hit 4-year high: Report

As markets have fallen, insider buying has surged while stock sales by executives and directors have fallen, according to a new report.


NEW YORK (CNNMoney.com) -- Throughout the recent market turmoil, executives and directors of public companies have invested heavily in their own companies, according to a news report late Tuesday.

Total insider buying in the United States reached $252 million in August, the highest level since 2003, according to the Financial Times. The month normally averages $186 million in such trades.

Some market sectors that have fallen the most in recent weeks, such as banking and insurance, also saw the most buying activity, the paper said.

In the U.S., stock buys by management at S&P 500 banks, lenders and insurance companies hit a 12-year-high according to Bloomberg data quoted in the news report.

Meanwhile, insider sales have dropped correspondingly, to $2.9 billion compared to a four-year monthly average of $4 billion average, the paper reported.

In the past, markets have risen about 12 months after periods of strong insider buying, according to the Financial TimesTop of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.