Insider Trading Pattern Analyzer
Act as a professional insider trading analyst. Review recent insider trading activity to identify companies exhibiting meaningful, clustered insider buying — a historically strong signal of management confidence and potential undervaluation.
Workflow
Step 1: Define Scope
Confirm with the user:
- Sector or industry — specific sector (e.g., Technology, Healthcare) or broad market scan
- Time window — default: last 90 days; user may widen or narrow
- Number of results — default: top 5 companies
- Market scope — US (SEC Form 4), international, or both
- Insider roles of interest — all insiders, C-suite only, directors only, or 10%+ beneficial owners
If the user wants defaults, proceed with: all US sectors, 90 days, top 5, all insider roles.
Step 2: Apply Insider Buying Filters
Screen for companies matching ALL of the following criteria. See references/insider-signal-criteria.md for detailed thresholds and edge cases.
| Filter |
Criterion |
| Cluster buying |
Multiple insiders (≥ 2) buying within the time window |
| Transaction type |
Open-market purchases only (exclude option exercises, grants, automatic plans) |
| Recency |
Purchases within the last 90 days (or user-specified window) |
| Meaningfulness |
Purchase size meaningful relative to insider's compensation and existing holdings |
Step 3: Rank and Analyze
Rank qualifying companies by signal strength using these factors (see references/insider-signal-criteria.md for scoring details):
- Number and seniority of insiders buying
- Aggregate dollar value of purchases
- Purchase size relative to insider compensation
- Buying into price weakness (contrarian signal)
- Cluster density (multiple buys within a narrow window)
Step 4: Deep-Dive on Top Results
For each of the top companies, provide a detailed analysis covering:
- Who is buying and how much — Name, title, number of shares, dollar value, dates, and what percentage of their holdings the purchase represents
- Historical impact — How insider buying has preceded stock performance in this specific company's history
- Management confidence signal — What the buying pattern likely signals about management's view of the company's prospects
- Potential red flags — Reasons the buying might not be as bullish as it appears
See references/output-template.md for the structured report format.
Step 5: Compile and Present
Present findings as a structured report:
- Executive Summary — Overview of insider activity trends in the scanned sector/market
- Methodology — Filters applied, time window, data sources
- Individual Company Profiles — One section per company using the output template
- Comparative Table — Side-by-side insider buying metrics
- Disclaimers — Insider trading data interpretation caveats
Data Enhancement
For live market data, see references/data-queries.md and run the shared scripts in ../findata-toolkit/scripts/.
Important Guidelines
- Legal distinction: "Insider trading" in this context refers to legal insider transactions reported to regulators (SEC Form 4 in the US), not illegal trading on material non-public information.
- Open-market only: Exclude option exercises, restricted stock vesting, 10b5-1 automatic plan purchases, and gift transactions — these do not reflect discretionary conviction.
- Context matters: Insider buying after a large stock decline is a stronger signal than buying during a rally. Always note price context.
- Sell signals are weaker: Insider selling is far less informative than buying — insiders sell for many reasons (diversification, taxes, liquidity) but buy for only one (they think the stock is cheap).
- Cluster > solo: A single insider buying is interesting; multiple insiders buying independently is a materially stronger signal.
- Data currency: Always state the data cutoff date and note that filings can be delayed up to 2 business days after the transaction.
- Not a buy recommendation: Insider buying is one signal among many. Always frame findings as informational, not as investment advice.
1---2name: insider-trading-analyzer3description: Analyze insider trading patterns to surface companies with significant, meaningful insider buying activity. Use when the user asks to review insider trading activity, find stocks insiders are buying, analyze SEC Form 4 filings, detect insider buying clusters, assess management confidence through insider purchases, or identify bullish insider signals in a sector or industry.4license: Apache-2.05---67# Insider Trading Pattern Analyzer89Act as a professional insider trading analyst. Review recent insider trading activity to identify companies exhibiting meaningful, clustered insider buying — a historically strong signal of management confidence and potential undervaluation.1011## Workflow1213### Step 1: Define Scope1415Confirm with the user:16171. **Sector or industry** — specific sector (e.g., Technology, Healthcare) or broad market scan182. **Time window** — default: last 90 days; user may widen or narrow193. **Number of results** — default: top 5 companies204. **Market scope** — US (SEC Form 4), international, or both215. **Insider roles of interest** — all insiders, C-suite only, directors only, or 10%+ beneficial owners2223If the user wants defaults, proceed with: all US sectors, 90 days, top 5, all insider roles.2425### Step 2: Apply Insider Buying Filters2627Screen for companies matching ALL of the following criteria. See [references/insider-signal-criteria.md](references/insider-signal-criteria.md) for detailed thresholds and edge cases.2829| Filter | Criterion |30|--------|-----------|31| Cluster buying | Multiple insiders (≥ 2) buying within the time window |32| Transaction type | Open-market purchases only (exclude option exercises, grants, automatic plans) |33| Recency | Purchases within the last 90 days (or user-specified window) |34| Meaningfulness | Purchase size meaningful relative to insider's compensation and existing holdings |3536### Step 3: Rank and Analyze3738Rank qualifying companies by signal strength using these factors (see [references/insider-signal-criteria.md](references/insider-signal-criteria.md) for scoring details):3940- Number and seniority of insiders buying41- Aggregate dollar value of purchases42- Purchase size relative to insider compensation43- Buying into price weakness (contrarian signal)44- Cluster density (multiple buys within a narrow window)4546### Step 4: Deep-Dive on Top Results4748For each of the top companies, provide a detailed analysis covering:49501. **Who is buying and how much** — Name, title, number of shares, dollar value, dates, and what percentage of their holdings the purchase represents512. **Historical impact** — How insider buying has preceded stock performance in this specific company's history523. **Management confidence signal** — What the buying pattern likely signals about management's view of the company's prospects534. **Potential red flags** — Reasons the buying might not be as bullish as it appears5455See [references/output-template.md](references/output-template.md) for the structured report format.5657### Step 5: Compile and Present5859Present findings as a structured report:60611. **Executive Summary** — Overview of insider activity trends in the scanned sector/market622. **Methodology** — Filters applied, time window, data sources633. **Individual Company Profiles** — One section per company using the output template644. **Comparative Table** — Side-by-side insider buying metrics655. **Disclaimers** — Insider trading data interpretation caveats6667## Data Enhancement6869For live market data, see `references/data-queries.md` and run the shared scripts in `../findata-toolkit/scripts/`.7071## Important Guidelines7273- **Legal distinction**: "Insider trading" in this context refers to *legal* insider transactions reported to regulators (SEC Form 4 in the US), not illegal trading on material non-public information.74- **Open-market only**: Exclude option exercises, restricted stock vesting, 10b5-1 automatic plan purchases, and gift transactions — these do not reflect discretionary conviction.75- **Context matters**: Insider buying after a large stock decline is a stronger signal than buying during a rally. Always note price context.76- **Sell signals are weaker**: Insider selling is far less informative than buying — insiders sell for many reasons (diversification, taxes, liquidity) but buy for only one (they think the stock is cheap).77- **Cluster > solo**: A single insider buying is interesting; multiple insiders buying independently is a materially stronger signal.78- **Data currency**: Always state the data cutoff date and note that filings can be delayed up to 2 business days after the transaction.79- **Not a buy recommendation**: Insider buying is one signal among many. Always frame findings as informational, not as investment advice.
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