Housing Insiders are Selling

After several years of large profits and gains in their stock price, insiders are selling stock they own in home building companies.

Who are insiders and what does this information tell me? Insiders are the people who work for the company, in this case, the home builder and have inside information about the company.

Insider information is important because insiders are thought to have more knowledge about the company business and its prospects in the future. So, if insiders are selling, it is likely that they think the price of the stock will not be rising above current levels for some time.

Insiders recently sold large positions in Centex Homes, KB Homes, Toll Brothers, MDC and Beazer Homes. Evidently, people inside these companies do not see housing starts and sales maintaining the levels they have been at. Reading between the ticker tape, it looks like these giants of housing, fear a long, cold winter.