TipRanks gives you access to 4 market-beating strategies based on corporate insider transactions.
It’s an industry secret, that isn’t really a secret. Corporate insiders have an unfair advantage when it comes to trading stocks in their companies.
Clifford Sosin is the number 3 ranked corporate insider on TipRanks. He is the founder and investment manager at CAS Investment Partners. Thanks to his job, he has deep knowledge about the companies his firm invests in. And this knowledge pays off. As well as being a significant shareholder through his fund, Sosin invests millions of dollars of his own money into these companies. Like all insiders, he must report his trades to the U.S. Securities and Exchange Commission (SEC). This information is then made public. TipRanks brings transparency to the financial markets by tracking this information and making it easily accessible to retail investors. Looking at TipRanks, we can see that 44 out of 56 of Sosin’s transactions have resulted in a profit, with an average return of 161%.
Of course, Sosin is not alone in his outsized returns. Many of the top-ranked insiders on TipRanks have three-digit average returns. This is because they have access to information that retail investors simply can’t know.
Not all Insider Trades are Equal
TipRanks levels the playing field for retail investors. One way it does this is by giving individual investors access to the stocks that insiders are buying with their own cash through our unique Insiders’ Hot Stocks screener. The screener tracks over 80,000 corporate insiders. They are:
- C-Level executives, such as the CEO, COO or CFO
- Directors
- 10% + shareholders
Although their filings are available on the SEC website, it would be impossible for individual investors to track them. Firstly, the sheer volume of data is too much to consume. Secondly, not all trades indicate sentiment. Therefore, the screener only presents informative trades, i.e., those that do indicate sentiment, making the tool particularly powerful.
How to Find Insiders’ Hot Stocks
You can find the tool on the main menu of TipRanks.com under “Top Stocks” or on the App under “Investment Tools.”
4 Insider Strategies
The first thing you see in Insiders’ Hot Stocks is an overview of 4 major strategies that TipRanks has identified based on insider trading activity.
Transaction Strategy – all insider Buy or Sell transactions
C-level Strategy – Buy or Sell transaction trends by chief-level executives
Major Event Strategy – e.g., a company’s owner buying shares
Top Ranked Strategy – transactions by top-performing insiders
All of the strategies currently beat the S&P 500.
Performance has been measured since January 2009 and each transaction is measured after one month. You can compare strategies to their sector or to the S&P 500.
Click on “Show Detailed Performance” to see annual performance since 2010, including a breakdown of quarterly annualized returns, the average return per position, and the number of stocks with positive returns.
Stocks that Insiders Are Buying
Next, see a full overview of which stocks are currently being bought or sold by corporate insiders.
You can easily focus on any combination of the four strategies and edit the data in the results by clicking ‘Select columns.’ This includes price change, market cap, strategy, last activity, trending since, stock behavior, signal reasoning, and activities.
The results start with the most recently trending stocks. Change the order of the chart by clicking on any column header. Click on a stock’s name to see a full insider overview and conduct further research.
Now, Give it a Try!
Insider’s Hot Stocks is one of our most powerful tools, as it follows actual transactions, not just ratings or recommendations. What’s more, the transactions are being made by some of the most knowledgeable business people in the world.
