This article argues that CFO insider buying is a highly informative signal for investors, particularly in small and underfollowed companies. Unlike other insiders, CFOs have an intimate understanding of a company’s financial health, making their open-market purchases a strong indicator that the company’s financial realities are better than perceived by the market. The article highlights Lesaka Technologies (LSAK), Maximus (MMS), and Strategic Education (STRA) as current examples where CFO buying suggests undervalued businesses.
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Alpha Buying: The Most Informative Insider Isn't the CEO — It's the CFO
This article argues that CFO insider buying is a highly informative signal for investors, particularly in small and underfollowed companies. Unlike other insiders, CFOs have an intimate understanding of a company’s financial health, making their open-market purchases a strong indicator that the company’s financial realities are better than perceived by the market. The article highlights Lesaka Technologies (LSAK), Maximus (MMS), and Strategic Education (STRA) as current examples where CFO buying suggests undervalued businesses.