Fintel aggregates insider sell/buy ratio to predict market sentiment

NEW YORK, NEW YORK, UNITED STATES, August 20, 2021 /EINPresswire.com/ -- Fintel.io, a provider of advanced research tools for data-driven investors, developed a new feature on the platform that showcases macro market indicators generated from the Fintel insider trading database. The Fintel Market and Sector Indicators page includes Insider Sell/Buy charts to show the ratio of insider selling vs. insider buying for each sector.

“Corporate insiders tend to outperform the market, and when you aggregate the data across all companies, the sell/buy ratio is an excellent indicator of market movements,” said Wilton Risenhoover, founder and CEO of Fintel. “The Insider Buy/Sell Ratio charts can help identify a positive or negative outlook to help retail investors make better decisions.”

As indicated on the Insider Sell/Buy Ratio charts, high peaks represent a large proportion of selling vs. buying, which suggests a negative outlook. In contrast, low troughs suggest a positive outlook. Overlaid on each chart is a historical chart of closing prices for an appropriate benchmark. In many cases, a correlation can be made between peaks in the sell/buy ratio and peaks in the benchmark, which suggests the sell/buy ratio can be used as a useful leading indicator of market prices.

The internal sentiment of a company, which is helpful information for a retail investor, can be determined by examining the company's insider stock buy-sell ratio. If the sentiment is positive, insiders will typically purchase shares of stock; if the sentiment is negative, they will typically sell. The Sell/Buy Ratio looks at the volume of sell orders divided by the volume of buy orders and if more insiders are purchasing than selling, it could be a profitable opportunity for retail investors.

The Fintel Market and Sector Indicators page also looks at specific sectors, including energy, materials, industrials, consumer discretionary, consumer staples, health care, financials, information technology, communication services, utilities, and real estate. The Sell/Buy Ratio charts show the Fintel Market indicators broken down into market sectors to provide a high-level view of potential market movement.

Six sectors have increasing sell/buy ratios, and Real Estate, Materials, Industrials, and Consumer Discretionary are often considered leading indicators for recessions.
* Utilities
* Real Estate
* Materials
* Communication Services
* Industrials
* Consumer Discretionary

Sell/Buy Ratio as of August 18, 2021 for each sector:
* Energy: 1.35 (1.57 last month)
The Energy Sector insider sell/buy ratio is down from its high of around 4.5 this year indicating a significant increase in insider sentiment for the sector.

* Financials: 1.16 (1.66 last month)
The Financial Sector sell/buy ratio is down from its high of 2.0 this past year indicating an increase in the insider sentiment for this sector.

* Utilities: 2.15 (1.86 last month)
The Utilities Sector sell/buy ratio has been increasing this past year. It experienced a low of 0.60 in June 2020, which was its lowest since 2015. The increase in the ratio indicates a weakening of insider sentiment.

* Health Care: 2.30 (2.40 last month)
The Health Care sell/buy ratio has plummeted from its all-time high of 4.7 in Q1/2 of 2021 to its current numbers, which reflects a significant increase in insider sentiment as the COVID recovery continues.

*Real Estate: 2.89 (2.48 last month)
The Real Estate sell/buy ratio is below its recent highs at the peak of the pandemic, but still very elevated relative to its historical trend, indicating a negative outlook.

* Materials: 3.41 (3.70 last month)
The Materials sell/buy ratio is just below its all-time high of 4.02, recorded on July 28, 2021, indicating a significantly negative sentiment for the sector.

* Consumer Staples: 3.91 (5.27 last month)
The Consumer Staples sell/buy ratio is between its recent highs and lows, suggesting a normal outlook for the sector.

* Communication Services: 5.68 (5.67 last month)
The Communication Services sell/buy ratio is down from a peak at the height of the pandemic, but has been climbing steadily since 2019, indicating a slow but worsening outlook for the sector.

Industrials: 5.01 (6.65 last month)
The Industrials sell/buy ratio is currently midway between its recent highs and lows, indicating a normal outlook for the sector.

Consumer Discretionary: 4.50 (7.03 last month)
The Consumer Discretionary sell/buy ratio is down from its peak at the height of the pandemic, but has been steadily increasing since 2019, indicating a worsening outlook for the sector.

Information Technology: 10.94 (13.92 last month)
The Information Technology sector is midway between its recent highs and lows, indicating a normal outlook for the sector.

If the Sell/Buy ratio is less than one, then insiders are purchasing more shares than selling.

For more information visit https://fintel.io.

About Fintel.io:
Fintel.io is a leading equity research platform designed to help data-driven investors make better investing decisions. Fintel provides deep analytics on a variety of market data, including fund ownership, insider trading activity, short interest, and company financials. Fintel currently tracks over 9500 funds and over 63,000 securities traded worldwide. Information includes fund holdings, fund sentiment, financial data, and regulatory filings (including SEC, LSE, ASX, and SGX). Fintel was founded by Wilton Risenhoover.

About Finpedia.co
Fintel.io developed Finpedia.co as another resource for retail investors. Finpedia is a financial wiki that aims to develop thorough and complete research reports on every publicly traded company in the world. These research reports are crowdsourced from public documents such as regulatory filings and news reports. For more information visit finpedia.co.

Evan Sneider
Red Rooster PR
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