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FTSE 100 stock AstraZeneca (LSE: AZN) has taken a huge hit recently. Over the last few months, its share price has fallen about 30%.
Is there value on offer after this pullback? Company directors seem to think so. In the last week, they’ve been buying a ton of shares.
Why I look at insider buying
I pay attention to insider buying activity. Ultimately, no one has a better understanding of a company and its prospects than its leaders.
And insiders only buy company stock for one reason – to make money. They’re not going to throw their hard earned cash at company shares if they believe the share price is heading lower.
Of course, not every insider purchase is a valuable investment signal. Some trades have more weight than others. What I look for is large purchases from top-tier insiders. Research shows that these tend to be the most material.
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