Using KINFO to Get Insights From Corporate Insiders

While insiders are allowed to trade in their own company’s shares they are required to report their activities to the SEC. Numerous sites and services use this data, KINFO takes it one-step further providing deep insights and real time alerts, in this post we explain how.

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What´s happening in 2017

Many US investors are rejoicing in the continued equities rally. However, as millions of people rush into the stock market, a few are quietly walking out.

The number of individuals exiting doesn’t matter as much as who they are: corporate insiders. “A total of 3,500 insiders at Russell 3000 companies have unloaded their own stock in the last three weeks, while 467 purchased shares,” reported The Wall Street Journal.

A corporate insider, often a CEO or CFO of a publically traded company, has unique insight into the future of their business. Insiders are often free to buy and sell shares of their company at will, though trading based on non-publically available information is illegal.

The dichotomy between the behavior of ordinary shareholders and insiders has left many to speculate if the corporate leaders of the world are playing a game of wait and see. Information available on KINFO helps to answer some of these questions. Let’s take a closer look.

A Deeper Dive Into Insider Trading

Much of the most recent insider activity listed on KINFO matches the findings reported in The Wall Street Journal. However, the difference with KINFO is the up-to-date reporting that’s difficult to find elsewhere. Moreover, we offer granular-level insights across the range of C-Suite executives at publically traded companies. With this information, you have first-hand data on the trend, frequency, and amounts of insider trading. This data empowers ordinary investors to take clues from those on the ground floor.

With KINFO we can see to what extent insiders have sold shares. Limited selling among insiders is not necessarily a cause for concern. However, increasing selling among numerous insiders may portend problems. The aggregate data on KINFO puts the pieces of the picture together so you can see when these trends develop. In such cases, it may be time for a holder to take a closer look and reevaluate their position.


Insider transactions reported for Bank of America

This big picture approach is especially important for investors keeping an eye on insider trading. Why? Sometimes insiders are exercising stock options. This activity reflects on disclosed reporting as both a buy and sell. For this reason, viewing insider trades in isolation can be misleading.


Insider transactions showing size relative to their previous position

Additionally, many insiders opt to institute automatically triggered buy and sell activity. The purpose of such a system is to protect executives from trading outside the boundaries of SEC laws. The trend charts in KINFO empower investors with a holistic view that can inform smarter investing strategies.

Seizing Opportunity

Just as KINFO can help investors play defense, our data creates new was to build an offensive game plan. Experts and analysts project muted equity returns over the years. However, KINFO users can thrive by capitalizing on insider insights.

As these insiders take on more shares of their company, investors can rest assured that the leadership has “skin in the game.” This participation in the profitability of a company can create an excellent incentive for leadership to perform. This phenomenon is reassuring to investors.

Buying among those enmeshed in the company’s future speak louder than any analyst’s rating or buy/sell recommendation because insiders understand the fundamentals of the firm better than anyone. KINFO, in effect, puts you in the room with the management.

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