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Gains seen in drugstore chain Jean Coutu and others suggest that investors are expecting more consolidation in the sector.
Gains seen in drugstore chain Jean Coutu and others suggest that investors are expecting more consolidation in the sector.
(Christinne Muschi For The Globe and Mail)

Insider activity suggests TSX consumer stocks could be in trouble

A word of caution for investors who believe the good times are going to continue in the consumer cyclical sector of the TSX: corporate insiders are bracing for a pullback.

Consumer cyclicals has been the top performing sector on the TSX this year, with gains of about 35 per cent.

But there are now about 2.5 stocks with key insider selling for every stock with buying, according to INK Research, which monitors the buying and selling of stocks by executives and directors within their own businesses. That figure is based on insider transactions filed over the past 60 days.