Corporate executives sharply curtailed purchases of their own companies’ shares in July even as U.S. stocks marched to fresh records, adding a cautionary note to a rally dominated by retail traders and institutional buying. Data from the Washington Service show insiders at just 151 S&P 500 firms bought shares last month, the lowest count since at least 2018. The ratio of insider buying to selling dropped to its weakest level in a year, underscoring a lack of conviction among managers who arguably know their businesses best. The pullback contrasts with broader market exuberance. The S&P 500 notched 10 all-time highs in July and gained 2.2% for the month, extending a three-month advance that pushed the benchmark’s forward price-to-earnings multiple to almost 23—well above the 10-year average of about 18. Bank of America figures also show corporate share-repurchase programs slowed for a fourth straight week through 25 July, suggesting companies are prioritizing balance-sheet preservation over signaling confidence through buybacks. Risk appetite among individual investors remains elevated: margin debt climbed past $1 trillion in June and could approach $1.1 trillion when July figures are released, according to Global Market Observer estimates. Hedge-fund performance was mixed; Goldman Sachs reported that discretionary stock pickers gained roughly 1.5% in July, while systematic strategies lost 2% before recouping part of their drawdown late in the month. “The hesitation in repurchases suggests executives are more focused on protecting balance sheets than on endorsing current valuations,” said Dave Mazza, executive director at Roundhill Investments. For market participants, the divergence between insider caution and public-market optimism raises questions about how much additional upside remains after a rally that some analysts warn has run ahead of corporate fundamentals.