Most of the time, the really good insider opportunities come from execs in smaller companies.
This is because the insiders of larger companies are already well-compensated with gobs of stock…
So they tend to be net sellers.
But every now and again there’s a unique opportunity afoot.
With the bear market there’s the possibility of a serious downside acceleration.
It gets ugly and the uglier it gets the faster the ugly forms.
Investors don’t want to hold the bag on these names because the Fed is messing around with rates and a lot of buyers are trapped.
They bought at high prices and they don’t want to sell for psychological reasons.
So right now is a time to pay attention to some key insider buys, especially in large cap tech.
Take Adobe - the mega cap software company (ADBE)... not the mud-brick house.
Like most tech names, this outfit got a major boost from the Powell Put.
Nowadays, it looks like Adobe just got soaked with a firehose.
It’s seriously sagging, trading back to the March 2020 lows and all the earnings growth that was pulled forward got washed away…
But the CFO just increased his stake by $900 K… which is a serious chunk of change…
Considering the way this name has moved, maybe it’s worth taking a flier on it?
Unless, this insider is just tossing water balloons…
Which would be an unwise move for an occupant of an earthen hut that could get washed away by a heavy rain storm.
Or another rate hike from the central bank…
Either way, you want to keep a close eye on these broken large cap tech stocks…
Which is best done by watching what the insiders are doing.