Insider Trading Barometer
Insider trading can be an indicator of over- or undervaluation not only for individual companies but also for entire markets. Insiders bought a large number of their own shares during the financial crisis of 2008/2009 or the corona crash at the end of March 2020 - just before it went up again.
The Insider Trading Barometer continuously monitors the share of purchase transactions in the total volume of insider transactions and thus makes transparent how insiders currently see the markets.
All data without guarantee! The information presented is not a recommendation to buy or sell!
Calculation of the Insider Indicator
The value of the indicator is calculated as the moving average of the share of purchases in total insider transactions in a 28-day window:
Value = No. Purchases / (No. of purchases + No. of sales) * 100
Value = No. Purchases / (No. of purchases + No. of sales) * 100
This is based on all published insider transactions on the open market at the current time. Several transactions of the same insider on one day are simply counted as one to avoid distortions. For the USA transactions of people whose insider status is only legally valid if they hold >10% of the company, but who do not hold any position in the company are also ignored.
Calculation of the Insider Trading Barometer
The Insider Trading Barometer interprets the value of the Insider Indicator in relation to the average share of purchases in the last 12 months (dotted horizontal line in the charts). A large deviation up or down from this indicates a current under- or overvaluation of the market from the insiders' point of view.
The maximum deviation is the historically largest deviation (up or down) in the overall observation period (e.g. 12 months).
The maximum deviation is the historically largest deviation (up or down) in the overall observation period (e.g. 12 months).
Calculation of the insider Activity Indicator
The interpretation of insider activity is similar to the Insider Trading Barometer, except that here the average number of transactions (both purchases and sales) per day in the current time window is used as the basis for the value.
The value thus serves as an indication of how actively insiders are currently trading, regardless of whether they buy or sell their own shares.
The value thus serves as an indication of how actively insiders are currently trading, regardless of whether they buy or sell their own shares.