Insiders Are Buying More Stocks – A Good Sign?

Frankfurt The upswing on the stock market has slowed down significantly. The German share index Dax only moved sideways in a range between around 15,160 and 15,560 points in February. Insiders grabbed the shares of their own companies much more decisively that month.

“Insiders are more optimistic than they have been for a long time,” says Olaf Stotz. The professor of asset management at the Frankfurt School of Finance & Management private university regularly evaluates for the Handelsblatt which executive and supervisory board members in Germany are buying or selling shares.

The top managers know their companies better than any other investor – which is why their purchases and sales are also interesting for private investors. Stotz explains the insiders’ optimism by saying that the balance sheets and prospects of many companies look better than initially expected, despite inflation and rising interest rates. Read an overview and classification of large purchases here.