Strong Insider Buying is Good News for Stock Market
Strong Insider Buying is Good News for Stock Market. Corporate insiders have been buying their companies’ shares much more than selling them while investors were dumping stocks freaked by the coronavirus pandemic (See chart below). In fact the ratio of companies with insider buying vs. insider selling was 1.75 for March. This level is the highest level since March 2009, according to Washington Service. The fact that corporate executives with insider knowledge have been seeing value in their companies’ shares. Insider buybacks in such strong numbers historically is a bullish sign for the stock market and the economy.