They remained depressed over the summer of 2020 and into the fall, even as crude prices rose back above $40 a barrel. Shares of the oil producers crashed in the coronavirus sell-off in 2020 as oil prices plunged globally. Our recommended insider buys are time-sensitive and normally closed to public view – but you can still see them until midnight Sunday, February 26.Ĭatch our selected insider trades right now > (That’s how, even during bearish 2022, we closed 11 substantial double-digit gains in a matter of weeks.¹) Zacks has zeroed in on the best of these buys. When in-the-know officers dip into their own pockets to buy shares of their own company, there’s only one reason: They expect the stock price to go up.īecause of their inside knowledge of anticipated contracts, mergers, product breakthroughs and the like, insiders must report their trades to the SEC within 48 hours. Call it insider peer pressure, if you will. When things at the company are THAT good, insiders don’t want to miss out when everyone else is cashing in. Whatever the reason, they are all very confident that shares will be on the rise.Īfter all, who would buy more stock in a company if they knew it was sinking? And why would several of them be buying unless they didn’t collectively believe that their stock was a value?
When insiders buy in a cluster, it’s because they all know something very good is going on at the company. The opportunity to make more money motivates people - even people who are already well off, like highly paid CEOs and CFOs. Why do insiders spend so much of their own money on their company’s stock when they already own a ton of shares already? But once you do, that’s where big rewards can be found.Ĭluster Buying Sends the Strongest Signal Investors, therefore, have to dig below the surface to find the insider cluster buys. The cluster buy simply isn’t glamorous enough. There aren’t going to be headlines trumpeting the buys of a few corporate Directors and a CFO. But when four or five insiders all buy at the same time?īut you’re not going to hear about the cluster buys from the media. When one insider buys, he might be considered an optimist, especially when he’s the CEO. This mass insider buying behavior is called a “cluster buy” and it is the strongest signal you can get in insider trading. This big purchase made headlines and was analyzed on Twitter and Stocktwits by stock investors.īut what about when non-famous insiders buy their company’s stock and when a bunch of them buy en masse? He didn’t even buy during the dark times of the financial crisis. This was his first open market purchase of Netflix shares ever. In Jan 2022, Reed Hastings, the founder and then Co-CEO of Netflix, bought 51,440 shares for nearly $20 million even though he already owned over 5 million shares. We love it when a famous CEO buys a large chunk of his own company’s stock.
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