Insiders Are Selling Shares at B2Bs -- Even as They Tout Recovery

If B2B stocks are finally getting up off the mat following their brutal drubbing this spring, why are so many insiders filing to sell shares? Does this suggest a recovery in the sector won't be easy to sustain?

Regulatory documents show scores of insiders at B2B companies filing to sell shares in recent weeks. Market players say those filings suggest that even if B2B's future is as bright as execs insist it is, the sector will continue to be racked by volatility as insiders reduce their exposure to stocks they're heavily invested in.

Experts on insider trading warn against drawing stark conclusions about individual companies from these sales. "Insiders" is a broad term, they warn, covering directors and early-stage investors of all descriptions, as well as executives. But looking at selling action can pinpoint big holders' feelings about their investing prospects at a given moment.

'Way Undervalued'

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