Greetings fellow investors,
Today, we’re taking a closer look at the financial sector, and some interesting insider buying activity that may signal confidence in the market.
According to recent reports, corporate insiders in the financial sector have been making significant purchases of shares in their companies. Notably, Charles Schwab’s CEO and CFO have made substantial purchases, as has the CFO of East West Bancorp. The financial sector’s buy/sell ratio was 3.1, with 150 insiders making purchases – 6.9x more than the sales. Additionally, $18M of C-Suite transactions came from the financial sector – the highest overall.
It’s important to consider what may be driving this increased confidence among insiders. Some analysts believe that it could be due to the recent turmoil in the financial sector. There may be an increased expectation that Jerome Powell and the Fed will step in to lower rates or bail out banks if necessary due to insolvency.
Of course, this is merely speculation. It’s possible that insiders are simply taking advantage of market conditions and buying up shares in their own companies for other reasons. However, the data seems to suggest that there is a belief among insiders that the financial sector will remain stable and profitable in the near future.
In other news, Warren Buffet and Carl Icahn have been making moves in the oil and gas sector. Buffet invested $466M in Occidental Petroleum, while Icahn made several purchases of Southwest Gas Holdings. Interestingly, Buffet’s investment in Occidental Petroleum came at a time when oil and gas stocks were struggling due to declining demand and increased supply.
Overall, it’s an interesting time in the market, with plenty of movement and activity. As always, it’s important to stay informed and make informed decisions when investing. Keep an eye on insider buying activity, and don’t be afraid to make moves when the time is right.
Until next time,
Peter Burke, Investing Pioneer.
