Question 1

What is SEC Form 4?

Accepted Answer

SEC Form 4 is a filing required by the Securities and Exchange Commission when company insiders (officers, directors, or owners of more than 10% of shares) buy or sell stock in their own company. P-Type indicates open market purchases.

Question 2

What is insider buying and why does it matter?

Accepted Answer

Insider buying occurs when company executives purchase shares with their own money in the open market. It's significant because insiders have deep knowledge of their company's prospects, making their purchases a potential signal of confidence.

Question 3

How quickly do I receive insider buying alerts?

Accepted Answer

InsiderCluster monitors SEC EDGAR filings in real-time and sends alerts via Telegram within minutes of a Form 4 filing being published.

Question 4

What are insider clusters?

Accepted Answer

InsiderCluster categorizes insider transactions into clusters (APEX, WHALE, DUSK, CHIEF, STAKE, SWIFT, BULK) based on factors like transaction size, timing, insider role, and trading patterns to help identify potentially significant signals.

Question 5

What is P-Type transaction in SEC Form 4?

Accepted Answer

P-Type (Purchase) refers to open market purchases made by insiders using their own personal funds. Unlike stock option exercises (M-Type) or grants/awards (A-Type), P-Type transactions represent genuine out-of-pocket investments where insiders voluntarily buy shares at market price.

Question 6

How are insider cluster tiers classified?

Accepted Answer

InsiderCluster uses a 4-tier system: S-Tier (APEX, WHALE) for highest conviction signals, A-Tier (DUSK, CHIEF) for strong signals, B-Tier (STAKE, SWIFT) for moderate signals, and C-Tier (BULK) for standard signals. Classification is based on transaction size, insider role, timing patterns, and historical accuracy.

Question 7

What is the difference between insider buying and insider selling?

Accepted Answer

Insider buying typically signals confidence in the company's future as executives use personal funds to purchase shares. Insider selling, however, can occur for many reasons including diversification, tax planning, or personal expenses, making it less reliable as a signal. As Peter Lynch famously said, 'Insiders sell for many reasons, but buy for only one.'

Question 8

How do I track insider trading activity for a specific stock?

Accepted Answer

On InsiderCluster, you can view insider trading activity for any stock by visiting the filings page and searching for the ticker symbol. Each stock page shows historical Form 4 filings, transaction details, insider names and roles, purchase amounts, and our proprietary cluster classification.

Insider Purchase Filings - Real-time SEC Form 4 Insider Purchase Data

Insider Purchase Performance

Insider Purchase Filings - Real-time SEC Form 4 Insider Purchase Data

Insider Purchase Performance