ARSENAL > Insider buying

Insider buying

Markets
Definition
Open-market purchases by corporate executives and directors. Reported on Form 4 with the SEC within 2 business days of the trade. Cluster buying (multiple insiders simultaneously) is a stronger signal than single-person buys.

Long-run premium: ~3-6% over the next 6-12 months. Particularly powerful in beaten-down stocks where management buying signals the worst is over.
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