TipRanks identified some of the best corporate insiders to follow when they are buying using an algorithm to rank these company executives based on two factors:
- Average return per transaction
- Profitable transaction rate
TipRanks differentiates between informative and uninformative insider transactions. Uninformative transactions indicate that an insider is buying-selling shares for reasons that do not necessarily indicate confidence in the company such as exercising share options. Informative transactions are deliberately made by insiders.
In this case, we looked at stocks across all sectors that exhibit strong buy indicators based on informative transactions of insiders who are company executives, board members or 10 percent shareholders of publicly traded companies.
Here are two favorite stocks highly ranked corporate insiders are buying.