Watching the commitment to buying shares by senior executives and board members can be a powerful pointer to company prospects, but investors need to read the right signs.
Tag Archives | downgrades
Exogenous factors like macro changes and weather can affect a company’s short-term profits. Management often blames uncontrollable factors for earnings downgrades but rarely owns up to a fortuitous tailwind.
Earnings downgrades are not always bad news. They may present buy-side opportunities if the stock is oversold. It’s best to assess the circumstances via a checklist without panicking.