Nasdaq futures traded sharply lower this morning after Meta Platforms, Inc. (NASDAQ:FB) reported worse-than-expected Q4 EPS results and issued weak forecast.
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.
