The stock market can be seen as a great equalizer, a vehicle through which wealth can be generated and preserved by anyone willing to take the risk.
Investors are constantly looking to gain an advantage or an edge on the crowd. However, some individuals might have more resources at their disposal. Insider trading has again made its way into public discourse, and the controversy is continuing to heat up. Bloomberg News called the practice “the exemplar of white-collar transgression,” and went on to add that Americans are correct in their dismay at a “rigged” stock market.
Insider trading itself isn’t illegal, if done in compliance with the SEC. Insiders, or individuals who either have more than 10% equity, hold a senior officer role, or are members of a board, must disclose their trades to the Securities and Exchange Commission, which then makes them public knowledge.
Among the different classifications of insider transactions, one in particular stands out as a Buy signal for anyone watching. Deemed the “Informative Buy,” this is an instance wherein an insider decides to make a purchase of company shares with his or her own capital. These are significant, as they show an assertion of confidence in the company and its future by the insider, and indicate that the stock may gain in price thereafter.
Leveling the playing field is TipRanks, the big financial data aggregator whose business is providing everyday investors with tools that used to be reserved to professionals only. In attempts to time the market, common investors might not be able to place insider trades, but they sure can follow them. With TipRanks, users who have Ultimate accounts have the option to follow thousands of different insiders, receiving notifications any moment a trade is executed and published. Additionally, the site provides Insiders’ Hot Stocks lists as well as the 25 Top Corporate Insiders, and even ranks thousands of insiders across multiple data metrics so users can stay as informed as possible.
If the insiders are benefitting from insider trading, then so could everyone else.
According to TipRanks’ unique Insider pages, the following stocks have recently seen insider trading action.
Oracle
Like many other tech firms, this massive legacy computer software company has seen an impressive run-up throughout the economic recovery. Shifting with the times, Oracle Corp. (ORCL) has been transitioning its business to enterprise level cloud-computing solutions, and its stock price has reacted generously to the business model.
While the Uninformative Buys and Sells can occur due to myriad reasons, the Informative Buy essentially means the insider sees a bright future for the company, or at least a bright future for his or her own trading account.
For ORCL, several Informative Buys have been executed recently by Jeffrey Henley, the current vice chairman. Over the last 18 days, Henley has purchased nearly $12 million worth in ORCL shares. This kind of…
Read More: Insiders Confirm Confidence in These Stocks with Informative Buys