Not to be confused with insider trading, insider buying is a legitimate move made by the key decision-makers at a company. So, 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.
Typically, when insiders are buying shares with their own money, it signifies a vote of confidence by the management about the company's prospects. Notably, insiders might buy shares of their own company if they believe that the market is undervaluing the stock at current levels.
