Hi everyone! Today's research will be based on insider buying activity. We've been collecting the financial data from sources like Nasdaq for the last 1-2 months, and then aggregated it for all public US companies. As a result, we found the top 5 tickers where the insiders have been trading the most actively!
Let's think about it from the logical perspective - the people inside the company know far more than any analysts, any kind of trader, and any investor, because they're right at the coalface on what's going on - they can see what there will be in the future, if their pipeline is full of work, if the new contracts are about to be signed, etc. They don't always get it right, of course, but you can easily use this data metric in conjunction with your investment strategy - you can get an extra weight to the trade if the insiders are actively buying before you bought. We think that the more deals you see from the group of insiders - the stronger the signal!
Below you can find the top 5 companies by insider buying activity:
1. Liberty Media Corporation ($LSXMA) - the company is engaged in providing a subscription-based satellite radio service. It transmits music, sports, entertainment, comedy, talk, news, traffic and weather channels, as well as infotainment services.
2. Agile Therapeutics ($AGRX) - is a women's healthcare company to fulfill the unmet health needs of women. Its product candidates are designed to provide women with contraceptive options.
3. Sirius XM ($SIRI) - the holding is now composed of two businesses: SiriusXM and Pandora. SiriusXM transmits music, talk shows, sports, and news via its two satellite radio networks, primarily to consumers in vehicles who pay a subscription fee. Pandora is a streaming music platform that offers an ad-supported radio option and a paid on-demand service.
4. Augmedics Inc. ($AUGX) - the company provides remote medical documentation solutions and live clinical support services in the United States.
5. Loandepot Inc. ($LDI) - the Company provides nonbank consumer lending solutions for individuals in the United States.
As you can see from our top, there are companies of different sizes and in different segments, both giants and smaller ones. In our opinion, it is more useful to take into account such metric as insider buying activity when you consider investing in some small tickers. If the senior employees in small companies buy most of their stock - it's an important market indicator.
Just take a look at $AGRX - the insiders are abruptly buying with a market cap of only $0.1B! The price of their shares has been decreasing over the past year, however, we can see the peak of insider buying activity in 2019:
And after that, their shares have been growing in price for several months:
Let's keep an eye on it, perhaps we'll have a similar situation with a current peak!
What are your thoughts about it? Can huge insider buying activity be a powerful investment signal? Btw, you can check today's analysis here: https://contora.ai/top_companies?industry=all&growth=insider trading buy&over=last month
You can also check other alternative data points for these companies just by clicking on their tickers :)