Inside trading can help you to figure out the company’s fundamentals without researching them. It could also supplement your own research positively. You can achieve better trading results by following significant insider trades and only analyzing their true meaning.
On this page, we report insiders transactions with values of above $2 million USD. These are very important trades and usually guarantee the confidence of the insider in the transaction: buy or sell. In our insider trading news, we report a variety of important statistics for example: % of transaction as of company’s market cap, different trading models, targets, as well as what the insider could earn if the target is hit.
Even though it’s possible to trade only based on fundamental information, we, as professional traders, never suggest and never trade only based on it. We prefer to trade based using a combination of fundamental and technical analysis.
Types of Insider Transactions
There are several types of transactions made by insiders. The most popular are stock transactions, such as planned sales and open market transactions. But there are also transactions such as options exercising, derivatives, grants, warrants and other. Grants are usually provided for the insider’s work at the company. Insiders also receive options as a compensation package, which they can later exercise and convert to stocks. However, please remember that only one type of transaction is really useful and helps investors with meaningful information – the open market transactions. These are usually purchases or sales made because of important information or view of the company and are not tied to insiders’ compensation packages and programs. Of the two, the buying transactions are much more worthwhile for investors to analyze. This is because there are many reasons why insiders sell their stock not related to their view of the company’s future and knowledge. Exactly the opposite, there is only one possible reason for insiders to buy the stock of their companies – to ride the stock price up.
OctaFinance also publishes insider stock trading transactions worth 2%+ of the market cap and insider trades where the insider owns more than 10% of the company.