--- title: "Financial insiders buying their own stock at lowest pace in nearly two decades" url: https://newscentral.site/financial-insiders-buying-their-own-stock-at-lowest-pace-in-nearly/ language: en publisher: "News Central Site" section: "Business" published: 2026-10-08T07:00:00.000Z updated: 2026-10-08T11:49:37.021Z id: 05ca6a55-4f93-402f-bf0c-ad928536d440 source: "Fortune https://fortune.com/2026/10/08/financial-insiders-stock-buying-slows-bank-earnings-q3/" attribution: "Link to https://newscentral.site/financial-insiders-buying-their-own-stock-at-lowest-pace-in-nearly/ and name News Central Site when you quote or summarize this story." --- # Financial insiders buying their own stock at lowest pace in nearly two decades Trading activity among financial insiders plummeted in the July-to-September quarter, with just 298 unique buyers. Financial insiders are buying their own stock at a pace not seen in nearly two decades as Wall Street's biggest banks prepare for their quarterly earnings reports next week. Trading activity has been robust, with desks setting records and high-profile initial public offerings like SpaceX's recent debut providing a boost to the industry. However, a closer look at insider buying habits reveals a more cautious tone among financial executives. According to research firm VerityData, the number of unique financial-sector buyers, employees who made at least one purchase of their company's stock, plummeted in the July-to-September quarter. The data from VerityData shows that just 298 financial insiders were buying shares during this period, marking a nearly 23-year low. This is particularly noteworthy given that the firm has been tracking insider trading activity since 2004. The previous record low was set in the third quarter of last year, with 302 buyers. Interestingly, the number of sellers was not as drastically affected, but still reflects a broader trend of decreased insider buying across all sectors. VerityData's analysis covers over 3,000 financial services companies, including big banks, asset managers, and insurers. The drop in insider buying is consistent with market-wide trends. Insider buying fell by 18% to 1,290 buyers during the quarter, down from 1,580 in the previous period. This decline may raise concerns about the sustainability of current market conditions as bank earnings season gets underway. The trend of financial insiders purchasing their own stock has seen a significant decline in recent times. According to available data, this slowdown may be cause for concern as it could indicate that executives are hesitant about valuations. Securities filings reveal that some top executives at major banks like JPMorgan tend to sell substantial amounts of company shares on a regular basis. For instance, a notable sale was made by a Goldman insider just over a month ago, resulting in the disposal of more than $600,000 worth of stock. This phenomenon has led experts to speculate about its implications for market conditions. According to Jesse Fried, a professor at Harvard Law School, fewer financial executives buying their own shares can be seen as a bearish signal for that sector. This is because purchases by insiders have historically been associated with future market-beating returns for their firms. The lack of buying activity among financial insiders may also indicate that they are skittish about current valuations. VerityData's Silverman suggests that when equity prices reach a point where executives feel there's a significant dislocation between the market's perception and their own valuation, they tend to hold off on purchasing more shares. This reluctance to buy could be attributed to insiders' caution against overpaying for stocks. Like other investors, they are hesitant to chase markets and prefer not to purchase securities that appear to be above fair value. The relationship between insider trading and future market performance is a complex one, with some experts questioning its predictive value in certain sectors. According to finance professor Nejat Seyhun of the University of Michigan Ross School of Business, insider activity may not be as indicative of future returns as previously thought. Seyhun points out that while there can be a correlation between insider trading and market performance overall, this relationship is particularly weak when it comes to banks. This is because bank stocks are heavily influenced by macroeconomic factors such as monetary policy, interest rates, and inflation levels. These external factors make it challenging for executives to predict future stock returns in their own companies, Seyhun notes. As a result, insider trading may not be as effective a gauge of market performance in the banking sector. Earnings season is just around the corner, with major banks such as JPMorgan and Goldman Sachs set to release third quarter results on October 13 and 14 respectively. The financial sector is facing a mixed picture as the IPO market stalls and interest rates rise. The recent delays in listings by companies like Oura and Bamboo Insurance have added to concerns about corporate dealmaking becoming more difficult. This is particularly evident in the massive loans being taken out for AI projects, which could pose risks to large Wall Street firms if clients default on payments. The performance of bank stocks has also been underwhelming, with the KBW bank index declining by nearly 11% over the past month. In contrast, the broader market as measured by the S&P 500 has seen a modest gain of 1% during this period. The financial sector's relative weakness could be a red flag for investors ahead of upcoming earnings releases. Financial insiders' cautious behavior is another negative data point that investors will need to consider when analyzing bank earnings. As one expert noted, this trend is "something to have in your cons column" when preparing to digest the latest results and make informed investment decisions. --- Source: [Fortune](https://fortune.com/2026/10/08/financial-insiders-stock-buying-slows-bank-earnings-q3/) Published by News Central Site: https://newscentral.site/financial-insiders-buying-their-own-stock-at-lowest-pace-in-nearly/