Sabrient Insider Sentiment Index
"Insiders might sell their shares for any number of reasons,
but they buy them for only one:
they think the price will rise"
Peter Lynch
Former Manager of the Magellan Fund
Sabrient Insider Sentiment Index (NYSE Arca: SBRIN)
Index Performance
White Paper on Insider Sentiment Index
The Sabrient Insider Sentiment Index identifies 100 stocks, from a broad universe of U.S.-traded stocks and ADRs, that reflect favorable corporate insider buying trends (determined via the public filings of such corporate insiders) and recent earnings estimate increases by Wall Street analysts that follow the stocks, giving them the potential to outperform on a risk-adjusted basis the S&P 500 Index and other broad market benchmark indices.
Insiders -- which include the officers and directors of the company, as well as 10% beneficial owners of the stock -- are presumed to be well-apprised of the company’s business and future prospects. They know everything that reasonably can be known about their company’s business prospects, employees, customers, suppliers and competitors.
Therefore, when insiders go into the market to trade their own company's shares, they have deeper insight into their company's likely future prospects than can be captured in the more definitive information appropriately released to the public.
The index is tracked by the
Guggenheim Insider Sentiment ETF
(NYSE Arca: NFO). NFO is rated
4 STARs
by Morningstar.More information, including ETF components, can be found at the
Guggenheim website
.
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