Who best understands a company’s outlook – the average analyst, a financial blogger, or a company’s CEO? Tracking the activities of corporate insiders is a valuable strategy. After all, insiders have better insights into a company’s prospects than the average investor. Knowing when insiders buy or sell stocks is powerful information.
With the TipRanks Insiders tab you can easily incorporate insider transactions into your stock research. What’s more, using the tab you can differentiate between informative and uninformative transactions. This means you can exclude transactions that do not indicate insider sentiment from your decision making. Here’s how it works.
There are 3 types of insiders who are required to report to the US Securities and Exchange Commission (SEC) when they buy or sell shares in their company:
– C-level executives, such as the CEO, COO, and CFO
– Shareholders who own over 10% of the company, usually institutional investors
The first thing you see when you go to the tab is the value of shares corporate insiders bought or sold in the past three months for the stock you are researching, in this case, Shell Midstream (SHLX).
Next, you see a graph that shows insider activity over the past year. The gray line indicates the stock price and the blue bars show insider transactions. Hover over the bars to get more detailed information about the transactions. Transaction details include the month, type of transaction and number of insiders who bought or sold.
Insider Confidence Signal
Get an overview of insider confidence for the stock you are researching and see how it compares to the industry average. The confidence signal is based on a technical analysis of insider activity in the past three months.
Now, get a detailed analysis of the most recent insider activity. You can filter the information according to:
Insider’s Position – Officer, Director, >10 Owner, other
Action – Informative Buy, Informative Sell, Uninformative
Insider Ranking – with 5-star being the insiders with the highest ranking
The table is ordered according to date, with the most recent transaction appearing at the top. As with all our tables, you can easily reorder the results by clicking on column headers – including insider name, position, ranking, action, amount, and date.
You can get more information on any insider by clicking on their name. You can easily follow any insider by clicking on the blue +. Click on the icon in the SEC column to read the original source.
Informative vs. Uninformative Transactions
Informative transactions are deliberately made by insiders and indicate sentiment. Meanwhile, uninformative transactions show that an insider is buying/selling shares for other reasons, such as exercising share options, that do not indicate sentiment. You can easily filter the results to exclude uninformative transactions, as in the example above.
A Word About Expert Ranking
Expert ranking is based on success rate, average returns, and transaction count. As insiders can have less tracked positions than other experts, this can affect ranking.
How to Find the Insiders Tab
The tab is available when you research a stock on TipRanks. You can put the name of the stock you want to research in the search bar on the TipRanks homepage. You can also use the in the header navigation bar throughout the site:
Or you can click on one the stocks on our menu bar.
You will be taken to the Price Target & Analyst Ratings Page, simply hit the ‘Insiders’ icon on the left-hand side to be taken to the Insiders tab.
If you want to see all stocks with recent insider activity, try our Insiders’ Hot Stocks tool.
Now, Give it a Try
Incorporate those most in the know in your stock research with the TipRanks insider tab. It is easy to use and provides essential information for individual investors.