TipRanks
Strong Insider Buying Could Indicate a Bottom in These 2 Stocks
Every investor knows that the path toward profits lies in buying low and selling high. That’s a basic precept of any economic trading system. The trick, however, is recognizing when the stock is low enough to buy in. The prime moment to buy is when the stock hits bottom; that will maximize returns when the share price starts to rise again. There are a multitude of possible clues investors can use to find the price bottom; today, we’ll be looking at insider buying trends. Insiders – the corporate officers, board members, and others ‘in the know’ – don’t just manage the companies, they know the details. Legally, they are not supposed to trade that knowledge, or to blatantly trade on it, and disclosure rules by government regulators help to keep the insiders honest. Their honest stock transactions, however, can be highly informative. These are the people with the deepest knowledge of particular stocks. So, when they buy or sell, especially in bulk, take note. In this case, we’ve used the TipRanks Insiders’ Hot Stocks tool to find two stocks whose price has dropped recently – and that drop has coincided with some ‘informative buy’ insider trades. Let’s take a closer look. Intercept Pharma (ICPT) We’ll start in the pharmaceutical sector, with Intercept, a specialist in the treatment of chronic liver conditions. Intercept Pharma is working to develop treatment for several chronic…
