Stocks screener tools are essential for investors who want to identify stocks with strong potential based on insider buying activity. Tracking insider trades can provide valuable insights, as company executives and major shareholders often have better knowledge of their firm’s growth prospects. Additionally, using a calculator for CAGR (Compound Annual Growth Rate) helps investors evaluate the long-term return potential of stocks influenced by insider activity.

In this article, we’ll explore how to use a stock scanner to track insider buying trends and make informed investment decisions.

Why Track Insider Buying?

Insider buying refers to when executives, directors, or other key personnel purchase shares of their own company. This is often seen as a bullish signal for the following reasons:

✔ Confidence in Company Growth – Insiders invest their own money, indicating strong belief in future performance.
 ✔ Undervaluation Indicator – Frequent insider buying may signal that a stock is trading below its fair value.
 ✔ Long-Term Wealth Creation – Insiders typically buy with a long-term perspective, aligning with long-term investors.

How to Use a Stock Scanner for Insider Buying Trends

1. Choose a Stock Scanner with Insider Trading Filters

Look for a stocks screener that provides insider trading data. Some of the best options include:

• Finviz Elite – Offers an insider trading filter for recent purchases.
  
  
• Trade Ideas – AI-powered scanner that detects unusual insider activity.
  
  
• Benzinga Pro – Provides real-time alerts on insider trades.
  

2. Set Up Filters for Insider Buying

Most stock scanners allow you to customize filters to focus on significant insider buying trends. Key filters include:

• Transaction Type – Select “Buy” to focus only on insider purchases.
  
  
• Transaction Size – Look for large-volume buys, which indicate stronger confidence.
  
  
• Insider Role – Prioritize trades made by executives, CEOs, and CFOs.
  

3. Cross-Check with a CAGR Calculator

Once you find a stock with significant insider buying, use a calculator for CAGR to estimate its long-term return potential. A high CAGR over previous years may reinforce the stock’s attractiveness.

4. Analyze the Stock’s Fundamentals

Before making a decision, check additional factors such as:

• Revenue and earnings growth – Is the company financially strong?
  
  
• Debt levels – Is the company overleveraged?
  
  
• Industry trends – Does the company operate in a growing sector?
  

Best Practices for Using Insider Buying Data

✔ Look for Cluster Buying – Multiple insiders buying within a short period is a strong bullish signal.
 ✔ Avoid Selling Pressure – If insiders are also selling in large quantities, it may indicate uncertainty.
 ✔ Combine with Technical Analysis – Check if the stock is near a key support level before entering.

Final Thoughts

Using a stocks screener to track insider buying trends can give investors an edge in identifying high-potential stocks. Combining insider data with a calculator for CAGR ensures that you are investing in companies with both short-term momentum and long-term growth potential.