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Insider activity refers to company insiders, usually top order executives and directors, buying and selling shares of the company.
The legendary investment manager, Peter Lynch once said, "Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
When insiders (Directors, CEO, CTO and other top-level executives) of a company are buying shares, it provides more confidence for Outsiders (Traders) to speculate that the company’s stock price might increase, which leads them to take more buy positions, driving the share value higher.