Corporate insiders at W.W. Grainger, Inc. (NYSE:GWW) have decreased their position in the stock by -8.20% over the past 6 months. Insiders now own 1.80% of total outstanding shares.
Looking at stock market performance over the last few months, new investors may be worried that they might have missed out on some fantastic opportunities. With so much information and data available, they may not even know where to begin when getting into the stock investing arena. Everybody has to start somewhere, and becoming knowledgeable about the basics may help provide the perfect springboard from which to launch. Starting with the basics may help the investor understand the bigger picture which can then be filtered down into specifics. Because there is no magic formula to achieving success in the stock market, investors may have to explore many different strategies before choosing one to run with.
The SEC says that an “insider” is anyone who owns at least a 10% stake in a company’s stock. Insiders who make trades are required to file all of their transactions within two business days of the initial transaction date. Information about legal insider trading is extremely valuable to investors. After all, if insiders are buying stock in their own company, they probably know something that a normal investor does not. Due to the fact that insiders are prevented from trading stock within a six-month period, it can be assumed that they are buying their own shares because they are confident that their company will be a top performer over a long period of time. One of the greatest investors of all time, Peter Lynch, is quoted as saying: “insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
University of Michigan professor and noted insider trading researcher, Nejat Seyhun, discovered that when insiders bought shares of their own companies, the stocks outperformed the total market by 8.9% over the following year while when they sold shares, the stock underperformed 5.4% over the same period.
W.W. Grainger, Inc. (NYSE:GWW) stands 1.43% away from its 50-day simple moving average and also 20.48% away from the 200-day average.
Recently, the equity stands -4.21% away from the 52-week high and 114.11% from the 52-week low. The RSI (Relative Strength Index), an indicator that shows price strength by comparing upward and downward close-to-close movements is 54.36.
The consensus analysts recommendation at this point stands at 3.00 for W.W. Grainger, Inc.. This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell. Further, analysts have a 12 month target price of $333.64 on company shares. This is according to the analysts polled by Thomson Reuters which have recently published research reports on the firm.
Investors may be diving into the latest company earnings reports trying to scope out some quality stocks to add to the portfolio. Nobody knows for sure which way overall market momentum will sway as we near the close of the calendar year. Investors may be getting ready to do a portfolio review to see which stocks are worthy to hold, and which ones have underperformed a may need to be unloaded. Regularly monitoring stock investments may keep the investor ready for any big market changes that may occur.