Why insider trading matters?

When insiders buy shares on the open market, this can thus be regarded as a strong endorsement by those that know the company the best -- they are literally betting their own money on the company's future. Insider selling, however, is not necessarily meaningful in any way, as there is a range of reasons for insiders to liquidate (some) of the shares they own.

- Seeking Alpha
HOVNANIAN ENTERPRISES INC (HOV)
Sector: Consumer Cyclical; Industry: Residential Construction

Hovnanian Enterprises, Inc. designs, constructs, markets, and sells residential homes in the United States. The company builds and markets homes for first-time buyers, first-time and second-time move-up buyers, luxury buyers, active lifestyle buyers, and empty nesters in 141 communities in 24 markets.


Trade Date Insider Title Buy/Sell #Shares Price Value Option
2010-12-28 BUCHANAN PAUL W SVP Chief Accounting Officer Sell 15,000 $3.94 $59,100 No

Insider Smart

SIMON PROPERTY GROUP (SPG) - Bottom fishing the crash could be intimidating, but it can be easier if you know insiders are on your side. Aeppel Glyn, Director of SPG played safe and bought shares in May at $50, but it is not late at all, the stock is now $90.