When an insider files a transaction with code P, they have actively chosen to buy shares on the open market with their own money, at the current market price. This is the strongest signal of conviction — the insider is risking personal capital because they believe the stock is undervalued.
Code M transactions are option exercises — the insider is converting previously granted stock options into shares. This is typically a compensation event, not a conviction signal. The insider may immediately sell the acquired shares (a cashless exercise) to realize the option value.
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