These insider sales are not a red flag

Article Excerpt

THE TJX COMPANIES, $79.81, (New York symbol TJX; TSINetwork Rating: Above Average) (tjx.com; Shares o/s: 1.2 billion; Market cap: $94.2 billion; Yield: 1.5%), reports that some TJX executives and board members have sold large amounts of shares: for example, executive chair Carol Meyrowitz sold 16,223 shares for a total of $1.3 million. She still holds 209,390 shares. However, it pays to remember that insiders may sell for a variety of personal reasons that have nothing to do with the company. On the other hand, insiders only make substantial buys for one reason—they think the company has investment appeal. So, insider buying is a more powerful indicator than insider selling. TJX is a still a buy. buy…