Insider trading data allows retail investors to see exactly what corporate officers and directors are doing with their own stock. While insiders sell for many reasons (taxes, diversification, buying a house), they generally only buy for one reason: they believe the stock price will go up.

Key Signals to Watch:

• Cluster Buys: When multiple insiders (CEO, CFO, Directors) buy stock around the same time, it is often a strong bullish signal.
• Open Market Purchases: Look for "P" codes in Form 4 filings. This means the insider paid market price with their own cash, unlike option exercises or grants.
• Large Volume: Transactions that represent a significant increase in an insider's holdings carry more weight.

The SEC Form 4 is the primary document used to track insider activity. By law, insiders must file this form within two business days of a transaction.

Common Transaction Codes:

• P - Purchase: Buying securities on the open market or through a private transaction.
• S - Sale: Selling securities on the open market or through a private transaction.
• A - Grant: Receiving stock as compensation (often Restricted Stock Units or Options).
• M - Exercise: Converting derivatives (like stock options) into actual shares.

*StockInsider.io aggregates this data in real-time to provide you with actionable insights.