Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Massive insider selling in the homebuilding stocks signals real "real estate" slowdown?

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October 11, 2005

Massive insider selling in the homebuilding stocks signals real "real estate" slowdown?

Since the beginning of this year many CEOs and other insiders have been dumping their shares. Overall, the insiders from the 10 largest residential builders sold close to staggering one billion worth of their companies stock.

Leading the way was the CEO of Toll Brother, Robert Toll, who so far has unloaded about $220 millions of his stock holdings. Another Toll, Bruce, who is the company director, sold just under $159 millions worth of stock.
The stock meanwhile is around $38, down from $58.67 in mid June.

The other home builders where insiders have been selling very actively are DR Horton, Centex and Ryland Group. Ryland insiders sold almost 50 percent of their total holdings. Company stock that touched $83.25 just several weeks ago is trading almost 25% lower.

Interesting caveat is that many shares sold, were hold indirectly, by spouses and various trusts. With those who see what is coming, it is high time for an average Joe to become extra cautious.

Posted in Real Estate at October 11, 2005 03:54 PM

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