Execs at some of America’s largest publicly traded companies are unloading stock at a record pace, serving as a canary in the coal mine for a potential pullback.
Corporate insiders — executives, directors, and other senior managers with access to nonpublic information — have sold large blocks of stock over the past 60 days, according to Barchart.
Corporate Insiders are dumping as the stock market hits all-time highs 🚨🚨 pic.twitter.com/BOHwqeItU3
undefined Barchart (@Barchart) August 10, 2025
Some of the heaviest selling came from Dell Technologies (DELL), Nvidia (NVDA), Meta Platforms (META), Carvana Company (CVNA), Broadcom (AVGO), Vertical Aerospace (EVTL), Torrid Holdings (CURV), and Atlassian (TEAM), the data shows.
Overall, the vast majority of insider transactions in that period have been sales, with notable spikes on June 24, June 26, July 11, July 23, and Aug. 6.
“Corporate insiders are dumping as the stock market hits all-time highs,” Barchart said in an accompanying note.
Not every insider sale is a bearish signal. Executives often sell for tax obligations, compensation planning, or portfolio diversification. But the size and timing of these moves suggest many are taking advantage of record-high valuations to lock in profits.
The S&P 500 has staged a near-vertical rally since its April lows, soaring more than 28% to notch fresh all-time highs. Meanwhile, the Nasdaq climbed 40% from its lows to close at a record last week.
Insider purchases fall off the cliff
Separate data from The Washington Service shows insider buying activity at its weakest level in years. Only 151 S&P 500 companies saw insider purchases in July, the lowest monthly tally since at least 2018.
The insider buy-to-sell ratio fell to 0.26, the third-lowest reading in the past seven years.
⚠️Corporate executives are becoming more bearish:
undefined Global Markets Investor (@GlobalMktObserv) August 5, 2025
Only 151 S&P 500 companies saw insider stock purchases last month, the LOWEST number since at least 2018, according to Washington Service data.
The insider buy-to-sell ratio FELL to 0.26, the 3rd-lowest in 7 YEARS. pic.twitter.com/LGWM4uLkyT
Insider trading platform CEO Watcher noted that since the pandemic, sales executed under Rule 10b5-1 plans — which allow insiders to sell on a prearranged schedule — have often been followed by weaker stock performance.
Continuing to look into Abnormally Large 10b5-1 Sales.
undefined CEO Watcher (@CEOStockWatcher) August 2, 2025
1) Post-COVID, stocks have performed terribly after insider sales (10b5-1 or not)
2) There is a clear step-down in forward returns for stocks where insiders make 10b5-1 sales >2x larger than their avg sale pic.twitter.com/komGlhhdTV
While this doesn’t imply executives are acting on inside information, the timing of some planned sales appears to align with periods of stretched valuations or looming headwinds.
Meanwhile, other research has flagged an uptick in “shadow trading,” where board members use nonpublic information about one company to trade the stock of another in a related industry.
While statistical analysis can spot such trends, it doesn’t necessarily prove intent or confirm illegal activity.
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