Understanding Insider Buying: The Power of Clusters

Reported 1 day ago

Investors often pay attention to insider buying, but not all trades carry the same significance. While single trades can be mere noise, clusters of multiple insiders—especially from the executive team—indicate strong conviction that the stock is undervalued. Research shows that companies with insider clusters outperform those with isolated trades, as these coordinated investments reflect genuine confidence and align leadership's interests with shareholders. Recognizing and analyzing these clusters can provide investors with valuable opportunities before the market adjusts.

Source: YAHOO

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