Examining the Correlation between Insider Buying and Subsequent Stock Performance

The Analysis

  • 14 Days
  • 30 Days
  • 90 Days
  • 180 Days
  • 360 Days

Filtering to 2010–2019 Transactions

  • Insider Transactions: 584,246
  • Average per company: 1,162
  • Most insider-trading active company: Facebook (FB) with 7,375 insider trades during this time
  • The following companies were tied for the fewest number of insider trades with 0 equity transactions each:
  • APA Corporation (APA)
  • Carrier Global Corporation (CARR)
  • Organon & Co (OGN)
  • Otis Worldwide Corporation (OTIS)
  • Viatris (VTRS)

Filtering to Purchase Acquisitions

  • Transactions: 13,639
  • Average per company: 27
  • Median per company: 10 — As seen here, there were several outliers that had a disproportionately large number of insider buys between 2010–2019. The gap between the average (mean) and median is indicative of this.
  • Most transactions: Bank of America (BAC) with 1,769 insider buys
  • 32 companies were tied for fewest insider purchases during this time period with 0 trades.

Removing Companies with Insufficient Historical Data

Analysis Results

Greatest Outperformance Following Inside Buys

Laggards Following Inside Buys

Results Interpretation

Close

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