Bloomberg reported yesterday that stock sales by American executives exceeded stock purchases last month by the widest margin since 1987. Among the largest aggregate sellers were Microsoft's Bill Gates and Google's Eric Schmidt. We first profiled Google's massive insider selling back in September, when we noted that executives unloaded nearly $1.7 billion worth of Google shares during the six previous months. While many high-profile executives have indeed been selling a large amount of stock lately, there is debate as to whether this is due to a negative outlook on the economy or simply a move to diversify their holdings. Some argue that many executives, including Gates and Schmidt, sell shares on a fairly regular basis using a set program. In general, these programs tend to sell into rallies and buy into dips. Therefore, selling after this rally should come as no suprise to investors. Others, however, that economists are forecasting a slowdown in profits, and these sales are indicative of an upcoming slowdown or retracement in company performance. The answer may lie somewhere inbetween, however, such a large number of insider sales is not something that can be easily ignored.

Mentioned Companies
Microsoft Corporation (NDAQ:MSFT)
Google, Inc. (NDAQ:GOOG)