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Form 144 Vs Form 4 Divergence

Updated weeklyData needs: mediumlong only
paper
2012
Source
Internal extension of Cohen-Malloy-Pomorski 2012 / Lakonishok-Lee 2001 — planned (Form 144) vs executed (Form 4) divergence as an overhang non-event.
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In plain terms

When insiders file paperwork saying they will sell but then don't actually sell much, the stock tends to drift up as the perceived overhang lifts.

How it works

Form 144 declares intent to sell, but execution shows up on Form 4. When 90d aggregate Form 144 market value materially exceeds 90d Form 4 sale dollar-value, the overhang is unrealized — typically resolving with a price drift UP as traders who shorted on the headline cover.

Live results

2 times picked on its own · 118 times inside a blend (112 beat the stock) · updated 2026-06-06
This strategy is a frequent ingredient in blends that combine a few strategies on one stock. It has contributed to 118 such blended picks (112 of which beat simply holding the stock). Picking it on its own is only one of the ways it shows up.
How its picks scored vs. buy & hold
Each pick is graded on a recent year it was never tuned on, against simply owning the same stock
Where its edge concentrates
Share of picks in each company-size group that beat buy & hold
How often it trades
Active vs. patient. Bars on the left mean it waits for rare setups; bars on the right mean it trades often
Return vs. buy & hold
How much each pick beat or trailed simply owning the stock over the test year (extreme microcap moves trimmed)
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Data dependencies

  • Daily prices

    Adjusted-close OHLCV for every US-listed ticker; primary price feed.

  • SEC form 144 filings

    SEC Form 144 planned-sale notices, parsed from EDGAR structured filings.

  • SEC insider trades

    Form-4 insider transactions with role, size, and trade direction.

Expected edge

Reported return
50-150 bps over 20-60d (internal)
Tested over
T+1 to T+60d

Internal target 50-150 bps over 20-60d on overhang-relief windows.

Related families

Explore Form 144 Vs Form 4 Divergence on alphactor.ai

See which tickers this family is currently firing on, with live signals and rankings.

For informational and educational purposes only. Not financial advice. Learn more