Introduction
In an article from April of this year, I talked about why heavy insider buying is a strongly bullish signal for a stock. Academic studies have demonstrated it, in fact. Buying when insiders do tends to outperform the market by 6-10% per year, and most of this excess return accrues in the first few weeks and months after the insider makes the purchase.
After regaining nearly all of its market capitalization this year (down only ~3.5% year-to-date), the stock market is looking particularly frothy. Then again, "the stock market" is heavily and increasingly dominated