Insider buying is a signal for investors, but not always a good one. Sometimes insiders buy on faith, and yet the company continues to struggle. The question is whether the rest of the market agrees, because if it does, the opportunity is real. In this scenario, insider buying often signals a floor or, at least, the potential for a bottom and reversal, compounding already bullish trends. Assuming those trends are sustained, the likely outcome is stock price recovery, sustainable rallies, and fresh highs over time—a recipe for market-beating total returns.
