Hi everyone, Today I want to highlight a stock I’ve posted on here about once before, REZI. 3 months ago, I posted about how insiders beat the return of the stock already: https://www.reddit.com/r/InsiderTradingAlerts/comments/1l1885w/rezi_how_insiders_didnt_lose_on_trading_their_own/ When I posted it, the stock was at 22 dollars. It is trading at 33 as of today, a 50% rise. How did I know to look at this stock? Easy – I compared insider returns when buying to the return of the stock. The chart below shows the buys and sells of the insiders for REZI: You can see that the stock has appreciated by 50% since 2018, with lots of up and downs in between. However, if you bought when the insiders bought, and mirrored their level of commitment as determined by the increase in their holdings that they deployed, you would’ve seen a 17x return on capital. (at least according to my current backtest, which could be flawed. Doesn’t guarantee future results) But look at where they bought – 20 dollars, 10 dollars, more again at 18 dollars, more at 20 dollars, and it just keeps climbing now, up to 33. The sells are weaker signals, since sometimes the algo can factor in some options exercises. However, these insiders are not selling at bad spots as you can see. We will see if the top is in here, but insiders are buying higher than they ever have before. We will see if the insiders performance is to be continued. If you want nightly summaries of important insider trading, already filtered and sorted for convenience and signal strength, check out insidertradingalerts.ai, my website.
