The insider found the price attractive enough relative to valuation to reduce exposure.
As investor StockCompounder correctly noted:
“Insider selling doesn’t mean the business is bad, but heavy, coordinated selling near highs often signals valuation has run ahead of fundamentals.”
This is a valuation signal, not a business signal.
5️⃣ The Most Important Question Nobody Asked: Who Bought?
One comment cut through the noise:
“Who absorbed yesterday’s volume? 28M shares, almost stagnant price, no LC, no UC. Insane.”
This is the real institutional question.
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28 million shares traded
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Price remained stable
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No panic circuit breakers
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No disorderly price action
That tells us strong hands were present on the other side.
Large volumes at stable prices typically imply:
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Institutional absorption
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Fund rebalancing
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Long-only accumulation replacing insider supply
Markets don’t move on emotion — they move on marginal buyers and sellers.
6️⃣ The Re-Entry Angle (Often Ignored)
An interesting layer to this case is market chatter suggesting:
The CEO may repurchase 12 million shares after selling 10 million, potentially at similar or lower prices.
Whether or not this happens is secondary.
The primary insight is this:
