One indicator that investors tend to view as a sign of confidence among company management is insider buying - when executives, board members, and major shareholders put their own money on the line by purchasing company shares. Since these insiders have unparalleled access to the company's strategic plans, advantages, and challenges, their willingness to invest in their own stock is often considered to be a bullish signal.
In a market environment where a handful of small-cap stocks are starting to outperform their larger-cap counterparts, it's worth pointing out the insider buying on a couple of Russell 2000 Index (RUT) components this March - particularly with the purchases made by top executives at both companies. Here's a closer look at the insider buying activity on these under-$20 small caps.
