Insider buying signals: what to watch and what to verify

Insider buying attracts attention because the insider is often using personal capital to buy shares in their own company. The stronger signals usually come from context: role, size, timing and whether other insiders are acting around the same period.

Signals that deserve a closer look

• Open-market purchases where the transaction code is P.
• Senior insiders such as CEO, CFO, chair or director.
• Large disclosed value relative to ordinary compensation events.
• Cluster activity where multiple insiders file within a short window.
• Fresh filing dates where the disclosure is recent.

What can weaken a signal?

Not every acquisition is a true market purchase. Stock awards, option exercises and tax events should be separated from discretionary open-market buying. Source filings and footnotes are essential.

How Nortis labels insider buying

Nortis separates open-market buys from routine Form 4 mechanics, flags clusters, and keeps original source links attached to every alert. The aim is to reduce noise while keeping the user in control of the final interpretation.

For a broader overview, read the insider trading alerts guide.