Key insights
- The post discusses the significance of insider buying as a market signal. It suggests that repeated buying, cluster buying, first buys after inactivity, and buying after drawdowns are more meaningful than single insider sales. The overall impact on US equities is slightly bullish, as strong insider buying patterns can indicate confidence in a company's future prospects.
I am curious how people here actually use insider activity in practice.
My current view is that single insider sales usually do not tell you much because they can be driven by liquidity, diversification, or compensation mechanics.
What feels more interesting is:
- repeated buying
- cluster buying by multiple insiders
- first meaningful buys after long inactivity
- buying after a long drawdown
Do you treat this as a serious input in your process, or more like a secondary clue that only matters once you already like the business?