Insider Trading Signals

How it's calculated: Cluster strength scores (0-100) measure the significance of coordinated insider activity based on four key factors:

• Number of insiders (30 points max): 3 insiders = 10pts, 5 insiders = 20pts, 7+ insiders = 30pts
• Total value invested (30 points max): $1M = 10pts, $5M = 20pts, $10M+ = 30pts
• C-suite participation (20 points max): 1 C-suite = 10pts, 2+ C-suite = 20pts
• Time concentration (20 points max): <7 days=20pts, <14 days=15pts, <30 days=10pts

Strength grades:

• Very Strong (81-100) - High conviction cluster with significant value and C-suite involvement
• Strong (61-80) - Notable cluster activity worth investigating
• Moderate (41-60) - Decent cluster signal but may lack key factors
• Weak (0-40) - Limited cluster significance

What to look for: Strong clusters (61+) with multiple C-suite members buying within a short timeframe often indicate high insider confidence. Click "View" on any cluster to see detailed breakdown including individual insider roles, transaction timeline, and exact strength calculation.

How it's calculated: Sentiment scores (-100 to +100) are generated continuously using a sophisticated weighted algorithm:

• Role Weight: CEO trades (3.0x) and CFO trades (2.5x) impact the score significantly more than Directors (1.2x) or Officers (1.5x).
• Time Decay: Recent transactions are weighted heavily, while older transactions fade exponentially (e.g., a trade today is 10x more impactful than one from 3 months ago).
• Confidence Score: The final score is adjusted by volume and frequency. A single small trade will not generate a high conviction score (>70) regardless of the ratio.

Score ranges:

• 70 to 100: Very Bullish - Strong insider buying
• 30 to 69: Bullish - Moderate insider buying
• -29 to 29: Neutral - Mixed or balanced activity
• -69 to -30: Bearish - Moderate insider selling
• -100 to -70: Very Bearish - Strong insider selling

Important context: Large tech companies (NVDA, AMD, MSFT) often show bearish sentiment due to regular stock-based compensation and diversification selling. This is normal and doesn't necessarily indicate negative outlook. Sentiment is most meaningful for mid-cap companies and when comparing within the same sector.