Investors and the press have lately paid close attention to notable insider selling activity from company executives. For example, Jensen Huang, the CEO of (NVDA), offloaded shockingly over $300 million worth of stock just in July. (MSFT) officials have also been aggressive sellers; insider sales in the past year amount to more than $72 million in the company. Particularly from such well-known personalities, these actions automatically beg the question: Should you follow their lead? Alternatively, might personal motives motivate these sales instead of a lack of company confidence? Before deciding what to do with your investment depending on insider selling, one must first know the reasons behind this behavior.
Blindly following executives can be as costly as not following them.
