One strategy for selecting top stocks is to track insider transactions. After all, if insiders are dipping into their own pockets you can imagine it’s because they believe the stock looks compelling. A Harvard study revealed that insider purchases earn “abnormal” returns of more than 6% per year. The authors of the study conclude that insider buyers “have a good feel for near-term developments within their firm.” The advantage of following these insiders isn’t just that they are privy to data which the rest of us don’t necessarily know – it’s also that they are held responsible for their decisions.
https://www.tipranks.com/news/article/2-strong-buy-stocks-insiders-are-snapping-up-3