Published on 14 Apr 2024 on Insider Monkey via Yahoo Finance
10 Buy-Rated Stocks with Latest Insider Purchases
In this article, we will take a detailed look at the 10 Buy-Rated Stocks with Latest Insider Purchases. For a quick overview of such stocks, read our article 5 Buy-Rated Stocks with Latest Insider Purchases.
Insider trading and its relationship with stock returns is a topic that has interested researchers for a long time. When insiders buy their own company shares, does that mean they know something outsiders don’t and they are piling into their company shares to profit in the long term? Many research papers would answer this question with a “yes” albeit with many ifs and buts. For example a research paper entitled “Insider Trading Patterns” tries to find out why and when insiders buy their own company names. The research, conducted by Lee Biggerstaff, David Cicerob and M. Babajide Wintoki, says that duration is very important while analyzing insider trades. When insiders buy or sell a stock for a long period of time, they may have a “longer-lived” informational advantage.
Insiders Preserve Their "Informational Advantage"