The market often overlooks or neglects the potential signalling risk contained within company Insider Transactions. Investors are typically provided with basic trade details like who, how much and which direction but we’d argue there is simply not enough to infer positive or negative performance bias based on this information alone.
Using our prescient analysis, OTAS provides a unique star ranking which accompanies the Insider stamp telling you immediately whether the latest transaction by a company director or major shareholder has predicated the future price direction of the shares. From as little as a single well timed discretionary trade, OTAS can identify which insiders historically you should follow and those you shouldn’t….
The recent buying in retailer Metro AG is a prime example of one you should……
3-Star rated Supervisory Board member Juergen Steinemann purchased €1m of stock on Friday. Singling out his own previous transaction history it is evident that he possesses particularly astute market timing, buying close to the trough after multiple periods of decline and prior to subsequent strong rallies in the share price.
Of course an investment decision is not made on one factor alone. The Core Summary allows you to quickly draw conclusions on the state of a company by analysing a range of multi-asset observables to understand if and where additional risks(or opportunities) may lie.
In Metro’s case, the company is currently not displaying any undue signs of risk but conversely is supported by a continued contraction in credit spreads and short interest, whilst company sentiment remains positive with the sell-side in the TIM alpha capture platform, displaying a 9 score on the TIM indicator stamp.