I have noticed insiders keep selling their shares. Do have any idea why it is happening?

Hi Elham,

I took a dive into REAL's insider activity and you are correct that there has been lots of insider selling. However, 90% of the selling is tied to options and not open sells on the market. It is important to distinguish the two. The latter is what you will want to look for.

From what i can tell, there has only been one insider (Jason Smith, Director) which has sold on the open market. This is neither a bearish, nor bullish sign. One director selling is no reason to panic - they can be selling for a variety of reasons. Diversification, making a new purchase, etc. Once you start to see multiple Directors selling, this could (but not always) be a bearish sign. This is not the case at REAL.

At this point, there is no reason for concern based on insider activity at REAL.

Mat

Hi Dan,
I speak about real.to .
Sorry that I didn't include the name of company in my question previously.

Hey there! Are you speaking on an individual stock, or the market in general?

Insiders can be selling their shares for a number of reasons. For one, some of them are paid via stock compensation. So, they may be selling some shares because they need capital etc. There's actually very little instances where insider selling spells doom for a stock. Yet, a lot of investors are very scared when even the slightest bit of it happens.