One quantifiable indicator of management's confidence in their own company is insider buying - in other words, when executives are actively buying shares with their own money. These “insiders” are intimately aware of the functioning of the company, and often have unique insights into its operations, financials and strategic decisions. Consequently, when these insiders are buying stock, it is generally construed as a positive signal.
But who are these insiders? "Insiders" are a group that includes a company's officers and directors, as well as any shareholders with a stake of 10% or more. Insider buying or selling activity can be accessed through publicly available Form 4 filings.
