When insiders sell shares, it indicates their concern in the company’s prospects or that they view the stock as being overpriced. Either way, this signals an opportunity to go short on the stock. Insider sales should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a selling decision.
The Meaning Behind Value Stocks
A value stock is traditionally defined in terms of how investors in the marketplace are valuing that company's future growth prospects. Low P/E multiples are good base indicators that the company is undervalued and can most likely be labelled as a value stock.
Wall Street got some clarification from the Fed yesterday after a long wait, which helps explain why major indices are painted green this morning. The Fed basically said the economy is doing better, and that’s good to hear.
Some of the stocks that may grab investor focus today are:
Wall Street expects General Mills, Inc. (NYSE: GIS) to report quarterly earnings at $0.89 per share on revenue of $4.29 billion before the opening bell. General Mills shares fell 0.6% to $57.65 in after-hours trading.