insider cluster buying
In plain terms
When several company insiders buy their own stock around the same time, the strategy follows them and buys too, betting they know something good is coming.
How it works
Open-market insider purchases are the most informative insider signal, and clusters (several distinct insiders buying within a short window), especially with executive (CEO/CFO) conviction, carry the most next-quarter drift. The family scores a buying cluster on each ticker and goes long.
Live results
2 times picked on its own · 36 times inside a blend (34 beat the stock) · updated 2026-07-06Data dependencies
- SEC insider trades
Form-4 insider transactions with role, size, and trade direction.
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
Expected edge
Clusters of open-market insider purchases, particularly by executives, predict positive abnormal returns over the following quarter because they reveal informed conviction rather than routine trades.
Related families
When several insiders buy their own stock within a short window (a 'cluster buy'), it's the most reliable insider signal. Sales are mostly noise.
Many insider trades are clockwork 10b5-1 plans with zero info. Filter them out using trade-date entropy; only opportunistic cluster buys predict +82 bps/month.
When 2+ insiders file paperwork to sell within 14 days of each other, the coordinated planned-exit signal tends to mark short-term tops.
Pre-scheduled (Rule 10b5-1) insider sales aren't bearish — but cancellations are bullish.
Explore insider cluster buying on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.