Insider Trades

🧠 Financial User Guide: Understanding Insider Activity and Ownership Disclosures

📌 1. Insider Trades

This section shows recent individual trades made by insiders — people like:

• Company executives (CEO, CFO, etc.)

• Board members

• 10%+ shareholders

These insiders are required to report their stock buys and sells. Watching their trades can give you clues about how confident they are in the company’s future.

💡 How to Use It:

• Look for insider buying (especially multiple buys by different insiders). This may signal bullish sentiment.

• Be cautious when you see heavy insider selling — especially if multiple insiders are selling near all-time highs.

• Check form types like:

  • Form 4 → required for most insider trades

  • 10b5-1 → pre-planned sales (less meaningful)

• You can search by senator name, house representative, or company ticker to see who is trading what.

📊 2. Insider Trading Statistics

This section shows aggregated trends from insider trades. Instead of individual trades, it summarizes:

• # of transactions (buys vs. sells)

• Total shares acquired/disposed

• Average trade size

• Buy/Sell ratio

This lets you see the overall insider behavior for a specific stock in a particular quarter and year.

💡 How to Use It:

• A high buy-to-sell ratio (e.g., 2.0+) = more buying than selling → Bullish

• A low ratio (e.g., 0.2) = more selling → Bearish

• Use this with price charts to find accumulation zones.

• If insiders are selling after a big rally, it might signal a profit-taking zone.

🧾 3. Ownership Disclosure

This section tracks who owns a large stake in a stock, often required by law through filings such as:

• Form 13D or 13G (institutional holders)

• Congressional trades (for lawmakers)

• PACS & SuperPACS (for political ownership disclosures)

You’ll see:

• Owner name

• Title/role

• Total shares owned

• Ownership type (direct, indirect, trust, etc.)

💡 How to Use It:

• Spot major institutional holders (like BlackRock, Vanguard, etc.)

• Look for political influence — e.g., if lawmakers are heavily invested in a company related to upcoming legislation.

• Sudden increases or exits by major holders can signal rotation or insider knowledge of what’s coming.

🧭 Putting It All Together:

Use these tools like a financial detective:

📈 Bonus Tip:

While insiders may sell for many reasons (taxes, liquidity), they buy for only one reason:
👉 They believe the stock will go up.