"A $2M insider buy from the company's CFO is a very nice buy signal." Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance If there was one buying signal I'd put above all the others it would be insider buying. When I'm looking for stocks to trade, I like to find specific types of buys from key executives, directors and other insiders to see what they are doing with their own money. This can lead to lucrative buying opportunities. For example, I've seen insider plays result in gains as high as 2,250% in just two weeks. And earlier this week, I was alerted to a very nice insider buy alert on Rockwell Automation (ROK). Rockwell Automation is an American provider of industrial automation and digital transformation technologies, and on Tuesday I got alerted to a very nice buy signal. Christian E. Roathe, the CFO of ROK, made a $2 million purchase of the company. He bought 7,237 shares at a cost of $275.11 each. A $2M insider buy from a top executive is one of the strongest signals that the market can send. Because as Peter Lynch, the most successful fund manager on Wall Street, once quipped: "Insiders buy for only one reason, they think the shares are going higher." |
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