Insider buying

Purchases of this company's shares by its officers and directors, reported to the SEC on Form 4.

Formula

Insider net buying (6 months) = (shares insiders bought − shares they sold) ÷ shares insiders hold

How to read it

Insiders sell for many reasons but tend to buy for one. Open-market purchases carry information; grants and option exercises do not.

How to use it

Insider purchases — especially by several insiders at once — are among the better-documented signals.

In Kereon

Investing · company. The data vendor's net figure where it states one; otherwise derived from its share counts.

Also called: insider net buying, insider net, insider net, 6m, insider trades, 6m, net insider change, insider buying.

Related terms

The whole glossary · Investing tools