Insider Ownership

High insider ownership is correlated with good performance. Generally speaking, executives that own larger portions of a company are more motivated to make it succeed in the long run, not just for the next quarter.

We like to see insider ownership of 10% or higher. Even though insider ownership is preferred, it's not a dealbreaker. Some companies have been sensational despite being owned mainly by institutions.

Insider buying is bullish for a stock. Insider selling, on the other hand, doesn't have much correlation to performance (surprisingly). The difference could be that insider buying takes place when insiders expect the company to do well. Conversely, there are a number of different reasons for selling, such as diversification, philanthropy, or any life-changing event.