This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

6 Stocks With Big Insider Activity

WINDERMERE, Fla. (Stockpickr) -- For the week ending May 6, insider selling at S&P 500 companies outpaced insider buying by a rather large ratio of 565 to 1. This is a continuation of a trend we have seen since the Federal Reserve started its quantitative easing program, with corporate insiders taking advantage of strength in equity prices and selling off large chunks of their stock holdings.

According to a weekly report out of Bloomberg, the total amount of insider selling was $650.4 million, and the total amount of insider buying was just $1.2 million. Once again, I would like to point that the market has not cared about this huge difference in the amount of selling to buying by insiders at the largest companies in the world.

Shorting the U.S. equities market when these ratios started to show up in favor of the bears would have lost you money. Even worse, you would have missed out on many stocks that uptrended and returned big profits. This is why I stress that market headlines do not trump an overall trend in stock prices. The trend is always what matters most -- not your opinion based off of the news. If the market wants to go up despite the heavy insider selling, then it's foolish not to ride the wave higher.

Related: 5 Technical Trades for Tuesday

Nobody gets paid to be right. Traders and investors get paid to be on the right side of the trend. It never fails to baffle me how so many people will fight trends in the markets. This happens because they have lost the psychological battle of controlling their emotions. You must remain completely unemotional when trading. Your mindset shouldn't change, whether you're making or losing money, as long as you have strict money management policy in place. Keep losses small, and let winners run.

Nobody gets rich making a stand in equities markets. No matter how bearish the news is, or what you might feel about it, you have to take what the market gives you. Remember, often the market loves to climb a "wall of worry" and trend higher as the media fills the headlines with fear-based sensationalism. This doesn't mean we can't get situations where stocks to go down when headlines are bearish. It just means that before you place your bets, always make sure you have identified if there is an uptrend, downtrend or sideways trend in the markets.

Here's a look at a number of stocks with the most notable insider activity.

Stock quotes in this article: PCBC, FMBI, FSC, PX, WAT, EQR 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,501.65 0.00 0.00%
S&P 500 1,878.61 +3.22 0.17%
NASDAQ 4,148.3380 +21.3710 0.52%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs