Insider buying has been proven to have significant predictive power for stock prices – which is why we like to make a list of possible "insider" stocks to buy.
No one knows more about the condition and prospects of a business than the chief executive officer (CEO) and chief financial officer (CFO). When insiders like them buy stocks in the open market of the companies they control, the stock often outperforms the broader market for the next several years.
According to Nejat Seyhun, a professor and researcher in the field of insider trading at the University of Michigan, when insiders are buying shares in their own companies, the stock tends to outperform the total market by 8.9% over the next 12 months.
In the past month there have been some significant buys by the top two executives in some interesting companies. Let's take a look.
3 Stocks to Buy That Insiders Can't Get Enough of Now
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