Tracking insider transactions can be a valuable strategy. Knowing when corporate insiders are investing in their own company, or when multiple insiders are buying or selling the same stocks is useful information. After all, insiders often have better practical insights into a company’s outlook than the average investor.
Our Insiders’ Hot Stocks tool tracks tens of thousands of corporate insiders and shows you how they are investing. Here’s how it works. (Scroll down to read more).
How to Find Insiders’ Hot Stocks
You can find the tool on the main menu of TipRanks.com. Go to ‘Research Tools’, it appears under ‘Top Stocks’.
Who Are Corporate Insiders?
There are 3 types of insiders:
- C-Level executives, such as the CEO, COO or CFO
- 10% + shareholders
As with all experts, TipRanks ranks corporate insiders. You can see the Top 25 here.
Insider Trading Stock Strategies
The first thing you see in Insiders’ Hot Stocks is an overview of 4 major strategies that TipRanks has identified based on insider trading activity. These trends are:
Buy or sell transaction trends by all insiders
Buy or sell transaction trends by chief level executives
Major Event Strategy
Major institutional transaction events, for example a company’s owner buying shares
Top Ranked Strategy
Transactions top-performing insiders
Performance is measured since January 2009, with each stock being held for one month. Compare strategies to their sector or the S&P 500 by clicking on the radio buttons at the top of the table.
Click on “Show Detailed Performance” to see annual performance since 2010. This includes a breakdown of quarterly annualized returns. You can also see the average return per position and the number of stocks with positive returns.
Full Stock Overview
Next, see a full overview of which stocks are currently being bought or sold by corporate insiders.
You can easily focus on any combination of the four strategies. Go to ‘Select columns’ to add or remove data to the results. Available data includes price change, market cap, strategy, last activity, trending since, stock behavior, signal reasoning, and activities.
The results start with the most recently trending stocks. Change the order of the chart by clicking on any column header.
Click on a stock’s name to see a full insider overview and conduct further research. Press the blue plus sign to add it to your watchlist.
Informative vs. Uninformative Buy and Sell Transactions
Informative transactions are deliberately made by insiders, often because they feel the stock is undervalued. Uninformative transactions indicate that an insider is buying/selling shares for reasons that do not necessarily indicate confidence in the company, such as exercising share options. Click on ‘Activities’ to see recent insider transactions. You can click on the insiders’ name to go to their profile page where you can see their history for this stock.
Now, Give it a Try!
Insider’s Hot Stocks is one of our most powerful tools as it follows actual transactions, not just ratings, and is a favorite with experienced investors. What’s more, the transactions are being made by some of the most knowledgeable business people in the world.