How do I identify insider buying?

To identify insider buying, you can follow these steps:

1. Access Relevant Data: Obtain the latest insider trading data, such as Form 4 filings, which detail insider buying and selling activities.
2. Filter for Buying Activities: Focus on transactions classified as "P - Purchase," indicating purchases of securities on an exchange or from another person.
3. Analyze Time Period: Choose a specific time period, such as a month or a year, to analyze insider buying trends.
4. Calculate Total Buying: Sum up the number of shares purchased by insiders during the selected time period.
5. Determine Percentage of Outstanding Shares: Divide the total number of shares purchased by the total number of outstanding shares to determine the percentage of ownership that insiders have acquired.
6. Compare with Selling Activities: If the percentage of shares purchased is significantly higher than the percentage of shares sold by insiders during the same period, it could indicate an insider buying trend.
7. Consider Market Conditions: Assess the overall market conditions and industry trends to better understand the implications of insider buying. A higher percentage of insider buying may be significant in a bullish market, while it may have less impact in a bearish market.
8. Evaluate Stock Performance: Examine the stock's performance following periods of significant insider buying. Consistent stock price increases after insider buying can be a bullish signal.
9. Monitor Ongoing Activity: Continuously monitor insider trading activities to track changes in the insider buying trend over time.

By following these steps, you can identify stocks with an insider buying trend. However, it's important to note that insider buying is not a guarantee of future performance, and investors should conduct thorough due diligence before making investment decisions.