Insider buying and selling

Also called: insider trading, form 4, directors

Directors, senior executives and big shareholders must report trades in their own company's shares within two business days (SEC Form 4).

Formula

Trade value = Shares traded × Price per share

Worked example

1. Only open-market purchases (code P) and sales (code S) are shown.
2. Share awards, option exercises, gifts and shares withheld for tax are left out, because they aren't investment decisions.

How to read it

Insiders sell for many reasons (tax bills, houses, diversification), so sales tell you little on their own. Purchases are rarer and more telling: an executive putting their own money in is a sign of confidence. Several insiders buying at once is the strongest signal.

SEC Form 4 filings via Finnhub

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