Insider sales are common in public companies, but investors shouldn't ignore them, especially when unusually high. This may signal insiders view shares as overvalued, a bearish sign. Still, employees and large shareholders need to sell stock for cash. Investors must analyze each sale to understand its true message; not all are bearish.
Below, we’ll detail two of the market's most talked-about artificial intelligence (AI) stocks that have recently seen insider sales spike. Should investors truly worry about these sales, or are they simply distractions amid the big-time rallies in these stocks?
