Reading insider-trading signals — clusters, net flow, 10b5-1

Raw filings are noisy. The art is separating conviction from mechanics. These are the signals SEC Notifier surfaces and how to weigh them.

Cluster signals

A cluster is when several distinct insiders at the same company trade the same direction within a short window. Several insiders independently buying (a cluster buy) is a stronger signal than any single trade, because it is hard to coordinate and each is risking their own money. A cluster sell is worth understanding, though selling has many benign explanations.

One caveat: a wave of same-day sales across many insiders is often a routine compensation event — RSUs vesting or options being exercised on a set date — not a coordinated bearish call. Check whether the direction and timing look discretionary before reading too much into it.

Net insider flow

Net flow nets open-market buying against selling per company over a trailing window, so you can see at a glance whether insiders are accumulating or distributing. Because executives are paid in stock, modest net selling is the baseline; net buying is the rarer, more informative state.

Planned vs discretionary (Rule 10b5-1)

A Rule 10b5-1 plan is a trading schedule an insider sets up in advance, while not in possession of material non-public information. Trades that execute under such a plan are pre-scheduled, not reactions to current events — so a sale under a 10b5-1 plan carries far less signal than a discretionary one. SEC Notifier flags the planned share of selling so you can discount it.

The leaderboard

The insider leaderboard ranks the most active insiders by open-market value and transaction count over the trailing window — a quick way to find who is moving size. Sorting by any column re-ranks across every insider, not just the page you can see.

The network graph

The graph view turns the same data into a map of relationships — which insiders trade which companies, and which companies share insiders. It is the best way to spot funds and serial filers that span multiple issuers. See "Network graph" for how to read and drive it.

Common false signals

• Routine 10b5-1 sales dressed up as news — check the planned flag.
• Compensation events (grants, vesting, exercises) that look like activity but express no view.
• A single large sale that is really diversification or a tax bill, not a verdict on the company.