Insider Buys YayYo's Shares

Shares of YayYo Inc YAYO moved higher by 17% in today's regular session. Sanchez Stephen M. filed a Form 4 with the SEC on Tuesday, June 9. The insider bought 3,900 shares at $0.09 on Wednesday, May 20, and bought 1,529 shares at $0.17 on Tuesday, May 26. . After the transactions, the executive's stake in YayYo Inc. movedto 5,004 shares.

Why Insider Transactions Are Important?

While transactions from an insider shouldn't be used as the sole item to make an investment or trading decision, an insider buying or selling stock in their company can be a good added factor that leads to more conviction in a decision. When an insider buys stock after an important sell off, that can indicate the insider's faith in the success of the organization. Henceforth, if the stock is bought at new highs, it might be because the insider feels that the stock is not overvalued. Conversely, insiders who are selling stock at new lows can potentially indicate some kind of capitulation moment. Insiders selling at new highs can indicate that exec wants to "take some profit" and "lock in a gain."

Important Transaction Codes

Investors prefer focusing on transactions which take place in the open market, indicated in the Form 4 with codes P for purchase and S for sale. if the transaction was an open-market transaction, that means that the insider made a concious decision for the company's stock moving forward. Transaction codes besides P or S aren't relatively important as they are seldom tied to a decision by the executive. For example, transaction code A is indicative of an insider being forced to sell shares to attaincompensation. Moreover, transaction code C indicates the conversion of an option.