Insider Investigator
What are insiders signaling through their actions?
Additional derived signals may emerge during analysis based on company-specific findings.
The Insider Investigator analyzes insider trading patterns (Form 4 filings) to assess whether management and directors are acting in alignment with shareholders.
Insider transactions are one of the few signals where management puts real money behind their views. This lens asks: "Are insiders buying, selling, or hedging — and what does the pattern tell us?"
Signals Produced
What This Lens Catches
Cluster buying
Example: Multiple executives buying during distress
Look for: Coordinated open market purchases
CEO/CFO buying
Example: C-suite buying open market shares
Look for: Form 4 filings from key executives
Cluster selling
Example: Multiple insiders selling before bad news
Look for: Coordinated sales timing
CFO selling pre-earnings
Example: CFO dumps shares before negative guidance
Look for: Transaction timing vs. material events
Routine 10b5-1
Example: Pre-scheduled selling for diversification
Look for: 10b5-1 plan disclosures
Excessive selling vs. compensation
Example: Selling more than granted
Look for: Net shares sold vs. compensation grants
Analysis Stages
Transaction Aggregation
What have insiders done in the past 12 months?
Pattern Analysis
Is this routine (10b5-1 plans) or discretionary?
Context Assessment
What was happening when they traded?
- Predict stock price movement
- Assess business fundamentals
- Evaluate accounting quality (that's Fugazi Filter)
- Make buy/sell recommendations
- Assess legal compliance of insider trades