Director Activity     
 

Regardless of what analysis you may perform on a share price, there is one group of people who know the performance of a company better than anybody. And they are the people who run the company. They are aware of future growth or impending difficulties which will be reflected in the share price. They are also share holders, and to maximise their own wealth, will buy and sell shares in their own company accordingly. Any director who buys or sells shares in their own company must make a statement to the Stock Exchange of that activity. This is also a requirement for any (company or individual) that has a substantial holding.

A company director will not invest a substantial amount of money in their own company unless there is likely to be a good return on investment. One isolated incident of a director buying or selling is interesting. When you see several senior members of a company following suite, then this is a fundamental signal of future price movements.

If you have a small watchlist or portfolio, you can easily keep track of company announcements from the web site of your exchange or your broker.