How to Set Up (3 Steps)
- •Step 1: Search for any stock on StockAlert.pro (e.g., AAPL, NVDA, JPM)
- •Step 2: Select "Insider Transactions" and set a minimum value threshold (recommended: $100k+ for large caps, $25k+ for small caps)
- •Step 3: Choose direction (Buy, Sell, or Both), optionally enable cluster detection, and save
Alerts trigger only on open-market transactions filed via SEC Form 4. RSUs, stock option exercises, and non-cash grants are excluded. You receive the insider's name, title, transaction type (buy/sell), share count, price, and total value.
Example: JPMorgan Insider Cluster Buy - October 2023
- •Setup: JPM trading at $143 after regional banking concerns and rising rate uncertainty. Broad pessimism on financials sector.
- •Signal: Three JPM directors purchased $1.2M, $800k, and $500k in open-market shares within 5 days (cluster pattern). CEO had purchased $25M earlier that quarter.
- •Alert Trigger: Cluster alert fired on 3rd transaction within 7 days, each above $100k minimum threshold.
- •Result: JPM rallied from $143 to $205 (+43%) over the following 6 months as rate concerns faded and NII projections improved.
- •Key Insight: Multiple executives buying with personal capital during broad pessimism signaled institutional-level conviction that individual purchases alone would not have confirmed.
Scenario Guide
| Scenario | Signal Type | Threshold | Example | Action |
|---|---|---|---|---|
| CEO Large Buy | Single buy >$500k | $500k+ | CEO buys $2M after selloff | Strong conviction signal, research catalyst |
| Cluster Buying | 2+ insiders within 7 days | $100k+ each | 3 directors buy $500k-$1.2M total | Strongest signal, often precedes re-rating |
| Director Routine Buy | Single small buy | $25k-$100k | Director adds $50k annually | Weak signal, may be routine accumulation |
| CFO Sells After Lockup | Planned disposition | $250k+ | CFO sells 10% of holdings post-lockup | Often pre-planned (10b5-1), low signal value |
| Multi-Insider Selling | 3+ insiders selling | $250k+ each | Officers selling before earnings | Caution signal, check position sizing and context |
When to Use
- •You want to track insider conviction on stocks in your portfolio or watchlist as an additional data point
- •You're looking for confirmation signals before adding to positions, especially after selloffs or earnings misses
- •You want a cleaner signal than headlines or rumors, based on actual money committed by people with inside knowledge of the business
When Not to Use
- •As a standalone buy/sell trigger without additional fundamental research (insider buys are directionally correct ~60% of the time, not 100%)
- •For index funds or ETFs (no individual insider transactions)
- •Tracking insider sells in isolation (70%+ of insider sells are pre-planned 10b5-1 dispositions, diversification, or tax management)
Conclusion
Insider transactions rank among the strongest behavioral signals in equity markets. Use insider buying as a confirmation tool for existing thesis. Cluster buys (2+ executives within days) carry the highest predictive value. Insider sells require more context since most are pre-planned or compensation-related.