CNBC's Jim Cramer told investors about a potentially bullish tell: Watch for when management buys back shares of a stock with high short interest.
Short interest refers to the total number of shares that have been sold short and not yet repurchased.
If a company's management starts buying back shares with high short interest, it could be a sign they think the stock won't go any lower.
So short sellers may start to quickly repurchase the shares to minimize their losses, leading to a short squeeze that ultimately sends the stock higher.
"Insider buying plus heavy short interest can equal raging buy, as long as you avoid situations where the shorts are determined to crush the stock at any cost."
Persons:
CNBC's Jim Cramer, Cramer, —, Jackie Wilson, it's