(4) Positive Publicity For A Company
It is one of the most mind-blowing signals indicating stock price about to surge heavily. Public excitement towards a company can generate buying interest among investors.
An increased buying activity can quickly boost up the share price within no time. Positive publicity is a good indication for a company to perform better in coming quarters.
However, you should be wise enough to differentiate authentic information from rumors. Sometimes, operators may also trigger positive news flow to cut off their stake in a company.
Therefore, you should always remember that positive publicity is good, but it is not always good.
(5) Heavy Insider Buying
It is one of the most significant & great signs indicating stock price may skyrocket anytime. Insider buying is the purchase of shares of a company by someone who is employed in it.
Insider buying is different from insider trading. Insider trading refers to the illegal trading of shares on private information by corporate insiders.
However, insider buying is based on public information in situation where insiders believe that their stock is undervalued. It is usually a good sign indicating future stock appreciation.
According to a study conducted by research firm Market Profile Theorem (MPT), insider trading trends signal an up-and-coming shift in market & sector sentiment.
But, insider buying is not always important for outside investors. Sometimes, insider buying can also take place due to purchasing by newly appointed executives or director, or stock buying to get Wall Street’s attention.
Thus, you should remain careful while predicting the real reason behind insider buying.
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