Management's confidence in their own stock can be gauged by insider buying activity, where executives purchase company shares with their own money. These insiders, with their broad and deep company knowledge, are generally considered to be sending a positive signal when they buy stock. Insiders can include company officers, directors, and major shareholders (owning 10% or more), and their purchases are publicly disclosed via SEC filings.
Notably, the CEO of one under-the-radar, small-cap company has been heavily bulking up on his own company's stock this month. So, which Russell 2000 Index (RUT) component is it - and why is the CEO so gung-ho about its prospects now? Let's try and find out.
