Insider Selling Can Mean Anything, Whereas Buying Can Only Mean One Thing

I tend to ignore insider selling or at least treat it cautiously. Sure, a lot of sales inside a company can indicate management feels their stock is overpriced, but there are dozens of other reasons top brass sell stock, and they are never required to give the reason for their actions. Investors and traders should be able to tell on their own if a stock is grossly overpriced or not. If research confirms the insider action, than jump in the game and short. 

Insider buying, however, I believe is crucially important. While I can make a laundry list of reasons why someone chooses to sell a stock, the reasons to buy are much fewer in number. In fact, there's only one (to make money). It's not surprising that studies have shown much more meaningful correlation to stock performance and insider buying, as opposed to insider selling. So keep an eye on our insider updates tomorrow.