Insider Trading

The Insider Trading Widget provides you with information on the insiders (Directors, Executives, and Beneficial Owners ) who are buying and selling the stocks. You can compare insider trading activity to stock performance for navigating correlations, such as an increase in price following insiders buying with cash.

In this documentation, we will explore the following:

  • Add Insider Trading Widget
  • Insider Selector
  • Acquisition/Deposition Chart
  • Insider Ownership Diagram
  • Transaction List

Let’s get started 🚀

Add Insider Trading Widget

Step 1: Click on the Sidebar button from the top right corner of the interface.

Click on the Sidebar button

Step 2: Select Add or Remove Widgets from the dropdown list.

Select Add or Remove Widgets

Step 3: Click on the Add New Widget Here button at the bottom of the side panel.

Click on the Add New Widget button

Step 4: Select Insider Trading from the list

Select Insider Trading from the list

Step 5: Click on the Done and the widget will be added to the sidebar.

Click on the Done

Insider Selector

The Insider Trading widget allows you to render the insider trading data and observations for:

  • All directors or a specific director
  • All officers or a specific officer
  • All beneficial owners having more than 10% of a class of a company’s stock.

Note*: These selections affect all other parts of the widget.*

insider trading data

Acquisition/Deposition Chart

The acquisition or deposition chart aggregates insider trading activity over time, enabling you to view whether insiders are primarily buying or selling through- Columns and Lines.

Acquisition/Deposition Chart

Columns

The columns represent insider actions grouped by type and week. You can hover your cursor over any column to understand what insider activity it is trying to convey.

There are different types of columns (differentiated based on colors) in the acquisition/deposition chart conveying different interpretations of insider activity as summarized in the table below:

COLUMN TYPE INTERPRETATION LOCATION ON CHART
Green Insiders have bought the shares Acquired (Green Area)
Red Insiders have sold the shares Disposed (Red Area)
Blue Insiders have been awarded the shares Acquired (Green Area)
MIXED INTERPRETATIONS
Light Gray Insiders have been gifted the shares Acquired (Green Area)
Light Gray Insiders have disposed the shares as a gift Disposed (Red Area)

Acquisition/Deposition Chart

Lines

There are three types of lines (differentiated based on colors) used in the acquisition/deposition chart conveying different interpretations as summarized in the table below:

LINE INTERPRETATION
Black Represents the asset price over time.
Orange  Represents 6-month on-balance volume (OBV) of cash-related insider actions 
Blue Represents 1-year on-balance volume (OBV) of cash-related insider actions

Examples

Let’s have a look at some examples below to understand how columns and lines in the acquisition/deposition chart work together to convey a precise explanation of insider trading activity.

Significant Insider Selling

In the above chart, a significant insider selling for cash can be observed for the last 12 months. In addition to no “buy for cash” transactions, the selling accelerated in November 2020.

Modest Insider Selling

In the above chart, a modest insider selling can be observed for the past 12 months, but along with an increase in buying for cash over the past six months.

Insider Ownership Diagram

The insider ownership diagram displays the percentage ownership held by different insiders.

Insider Ownership Diagram

Note: “100%” is defined as “all shares owned by insiders” and not “all outstanding shares of the stock”.

Transaction List

The insider transaction list displays each individual transaction sorted over time whether it is a Buy, Sell, Award, Gift, or Option.

The transactions appearing in the list are displayed by abiding by the following rules to provide the most relevant insights to traders. :

  • All option conversions and related activities are displayed as Option Exercise.

  • All transactions of the same type made during a single day are merged.

  • Data older than one year isn’t displayed.

  • Option Exercise transactions that are accompanied by other meaningful transactions (like a buy or a sell) are filtered out to only include the meaningful transactions.

Transaction List

Insider Traders are legally obliged to file their insider trading activity with the U.S. Securities and Exchange Commission (SEC) on certain forms within stipulated time periods. When you click on the Read for any of the transactions in the list, you are redirected to the official SEC archives to view the form reporting a comprehensive set of information on the executed transaction.

 official SEC archives

Jun 30, 2022

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