On the back of the NASDAQ breaching the 5,000 level today, we take a closer look at valuations and Director Dealings.
The market has enjoyed a rally over the past 2 months and thus pushed P/E levels higher. 12M Fwd P/E is well above the 2 standard deviation line, showing the current level of 21.2x forward earnings is stretched on a 2 year view.
Maxing out to 2006, we see these levels were last seen heading into the financial crisis:
What makes this analysis more interesting is that there was record insider buying this past February. In fact, it is only the second record amount since 2006:
Sorting the Director dealings page for buys over the past month, AMGN, FAST, GILD, GMCR, MDLZ, and YHOO are brought to the top of the list:
Highest February on a 2 year time frame:
Maxed out to 2006 shows the only other notable spike in insider buys was in July 2012: