When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
U.S. stocks traded mixed toward the end of trading, with the Nasdaq Composite dropping more than 100 points on Friday.
The Dow traded up 0.27% to 33,789.71 while the NASDAQ fell 0.96% to 11,676.75. The S&P 500 also fell, dropping, 0.11% to 4,076.81.