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3 Stocks to Buy Thanks to Recent Insider Buying

Insider buying is a great vote of confidence from management.

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Insider buying is almost always considered an excellent vote of confidence by management in its own product. Why would anyone — even a really wealthy executive — risk even a dime of his own money buying a stock he believed to have crappy prospects?

stocks to buy insider buying
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If one assumes that a 4% to 6% return can be easily had with bonds or other fixed income investments, then one can assume that an officer’s insider buying is attributed to a belief that he can beat those returns.

With insider selling, you can’t be sure if the sales are merely the result of management diversifying their financial planning or if the company is in heaps of trouble. One can make any excuse for selling. For insider buying, however, it likely foretells good times ahead for the company.

Indeed, since insiders by their very name know how the company is doing before it reports to the public, that’s all the more reasons to follow these purchases closely.

Here are three in particular that have my eye:

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