Why Q4 Will be the Time to Dive Deep into Insider Transactions

Insiders buying sell positions in companies which they have in-depth insight into will continue to be looked at and dissected as a source of potential information from which one can hope to make projections of future performance by many investors.

As I've stated in the past, however, I do think investors ought to put a pause on making such determinations right now, as financial markets continue to remain far too volatile for such pieces of information to matter in the near-term.

My personal expectation is that by the fourth quarter this year we could see things normalize in financial markets, making the assessment of insider transactions once again a useful tool.

Until then, I would encourage investors to look at projections of 2021 and beyond for stock purchases, as I do think 2020 will end up being a “lost year” of sorts for investors. This year will likely be too volatile to base any fundamental analysis for now.

As always, please remember to consult with a certified financial planner and do your own research before making investing decisions. Insider 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 each stock is one tool of many to glean pertinent information to assist in investment decision making.

Invest wisely, my friends.