Insider buying can be an encouraging signal for potential investors, especially when markets are near all-time highs.
The week's most notable insider buys were at a health insurer, an oil exploration and production company, and a biotech.
Some insiders were making return trips to the buy window.
This unusual options alert can help traders discover the next big trading opportunities. Traders will search for circumstances when the market estimation of an option diverges heavily from its normal worth. Unusual trading activity could push option prices to exaggerated or underestimated levels.
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.
Gainers
Communications Systems, Inc. (NASDAQ: JCS) rose 34.8% to $9.15 in pre-market trading as the company declared a special dividend of $3.50 per share.
Toward the end of trading Thursday, the Dow traded down 0.37% to 34,901.89 while the NASDAQ fell 0.03% to 15,281.73. The S&P also rose, gaining 0.31% to 4,499.94.
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.