Insider Buys Invesco Dynamic Credit Opportunities Fund Stock

Saba Capital Management, L.P. filed a Form 4 with the SEC on Tuesday, December 22. The insider bought 55,492 shares of Invesco Dynamic Credit Opportunities Fund VTA at $10.40 on Friday, Dec 18, and bought 15,036 shares at $10.37 on Monday, Dec 21. . After the transactions, the executive's stake in Invesco Dynamic Credit Inc. movedto 9,106,068 shares. Shares of Invesco Dynamic Credit Opportunities Fund rose by 0.4% from the previous closing price.

The Importance of Insider Transactions

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. An open-market transaction means the insider went into the market of their own volition and made an active decision about the potential path for a company and its 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 attain compensation. Moreover, transaction code C indicates the conversion of an option.