Combining insider transactions with earnings call transcripts signals

By examining these two dimensions together, we find stronger, more predictable market reactions when the words of company executives agree with their actions:

Watch the video summary

• Positive sentiment in earnings call transcripts leads to a more pronounced price drift when met with more insider buys over the trailing quarter, with a similar negative drift when negative sentiment coincided with more insider sales.

• We can enhance the earnings call transcripts strategies by applying an insider transactions overlay tilt to overweight the companies where the transcripts-based sentiment and actions of insiders match, and vice versa.

• The insider-enhanced strategies consistently outperform those based on standalone transcripts signals, particularly over long holding periods, with an average 20% Information Ratio improvement in the U.S. trading universes.

To read more about RavenPack’s Earnings Intelligence series research

• Equity Factor Investing Enhanced with News & Earnings Call Transcripts

• Uncover Alpha with Earnings Calls Transcript Data

• Earnings Intelligence: European Markets

• Combining News and Earnings-call Transcripts

RavenPack Earnings Intelligence

RavenPack Earnings Intelligence combines signals from separate sources augmented with sentiment and thematic analytics for a powerful alternative that removes the limits of isolated vendor data. Learn More