US stock futures moved lower on Tuesday, ahead of a batch of corporate earnings and the FOMC monetary policy decision on Wednesday. Investors, meanwhile, focussed on some notable insider buys.
When insiders purchase shares, it indicates their confidence in the company's prospects or that they view the stock as a bargain. Either way, this signals an opportunity to go long on the stock. Insider purchases should not be taken as the only indicator for making an investment or trading decision. At best, it can lend conviction to a buying decision.
