Congratulations! You could gain an edge in spotting price trends with Insider Activity

Moomoo Learn wrote a column · Dec 6, 2023 21:24

Elon Musk sold at least 22 million shares of Tesla stock over three days from December 12-14 before Tesla's stock dropped for three consecutive trading days. Meanwhile, multiple institutions, including Goldman Sachs and the Royal Bank of Canada lowered their price targets for Tesla's stock.

What does it mean

Insiders' activities are considered forward-looking signals of the company's prospects due to their access to privileged information.

From 2003 to this year, insiders have bought more during market downturns. The peaks of insiders' daily buys occurred in November 2008, August 2011, and March 2020, and after each one, the S&P 500 index entered a bullish period. The idea is that insiders buy when they believe the company is undervalued, based on their deep understanding of the company.

Insider Activity data can be used as a timing signal. By tracking insider activity, traders can follow the market trend more closely and choose better trading opportunities.

Exciting News

At moomoo, we collect and visualize this data in real time, making it easy for you to access insider activity data for U.S. stocks.

How do you find U.S. Insider Activity data on moomoo?

Congratulations! You could gain an edge in spotting price trends with Insider Activity

What can insider activity data tell us about U.S. stocks?

Insiders have access to more information about the company's internal operations and future plans. Therefore, when insiders buy or sell their company's stocks, it may indicate changes to the company's future prospects.

When making investment decisions, we can use insider activity data as an indicator to assess a company's fundamentals. Still, we must take into account other factors and perform thorough analysis and evaluation to make informed activity decisions.

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