Learn What Insiders Are Doing With Their Company Shares

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Don’t look now, but all 3 of the major markets have made some huge gains over the last couple of months. What that means for the future we are not sure yet, but that is not the point of this newsletter.

What I really wanted to focus on was insider activity…

What I mean is when executives who work for a particular company buy or sell the company’s shares. Because of SEC regulations and to avoid insider trading, these executives are required to publicly file their orders, so we can all see what is going on.

Why is this subject important now?

Believe it or not, many stocks out there are now up to or passed the levels they were since this whole market drama started. We would be naive to think that, at the very least, some profit taking won’t happen here. Moreover, with earnings reports being more focused on “accurate” guidance, eventually the companies that are “extending” the truth will show their true colors.

While there are many reasons why one might buy or sell shares, for the most part you have to believe that these high level executives have to know something; otherwise, why would they sell?

To make the story short, it is always a nice to get a different perspective when doing your stock research. Do you really want to buy a stock when its top-level employees are selling?

Just something to get you interested.

Yahoo Finance has an excellent tool called “Insider Transactions” that details the latest trading activity from inside the company. Just search for your stock, and then you will see the link towards the bottom of the left sidebar. Check out this example for Google.