Coming out of this pandemic, investors will undoubtedly be looking for any reason to back up the truck and load up on equities that may seem cheap based on historical levels.
Finding any sort of long-term catalyst that could help propel a company through this pandemic, and take its stock price higher post-pandemic, is going to be the focal point of many looking to find value today.
Insider transactions, whether they be buying or selling, have always been a bellwether investors look to for guidance on how internal sentiment of various companies could translate into future performance.
With a growing amount of analytical data now available to the average investor on insider transactions (which wasn’t previously as easy to find), investors can now more readily access such information. In times like these, insider transactions certainly should be utilized as an effective tool to judge one’s confidence level in a company and see how this confidence level matches up to that of insiders.
As always, please remember to consult with a certified financial advisor and do your own homework before making investing decisions.
Insider buying and selling activity is not necessarily indicative of the future performance of a given company’s stock price, and insiders regularly buy or sell positions in companies they own or manage for reasons other than expectations of future stock price performance.
Analyzing insider transactions in a given stock is one tool of many to glean pertinent information to assist in investment decision making.
Invest wisely, my friends.
