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News

Insider Buys ADM Endeavors Stock

Author: Benzinga Insights | November 27, 2020 12:27pm

 

Shares of ADM Endeavors Inc (OTC:ADMQ) moved higher by 30% from the previous closing price. CEO Johnson Marc filed a Form 4 with the SEC on Thursday, November 26. The insider bought 20,000 shares at an average price of $0.07. After the transaction, the executive's stake in ADM Endeavors Inc. moved to 61,601,000 shares.

The Importance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

Insiders buying stock after a notable sell off can indicate an insider's long-term belief in the success of the company; insiders buying stock at new highs can be an indication the exec doesn't feel the stock is overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its stock moving forward.

Transaction codes other than P or S are often viewed with less conviction as they are often not tied to a decision by the exec. As an example, transaction code C indicates the conversion of an option. Transaction code A indicates the insider may have been forced to sell shares in order to receive compensation the exec was promised upon being hired by a company.

 

Posted In: ADMQ

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