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:

1. •Sector or industry — specific sector (e.g., Technology, Healthcare) or broad market scan
2. •Time window — default: last 90 days; user may widen or narrow
3. •Number of results — default: top 5 companies
4. •Market scope — US (SEC Form 4), international, or both
5. •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.

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:

1. •Who is buying and how much — Name, title, number of shares, dollar value, dates, and what percentage of their holdings the purchase represents
2. •Historical impact — How insider buying has preceded stock performance in this specific company's history
3. •Management confidence signal — What the buying pattern likely signals about management's view of the company's prospects
4. •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:

1. •Executive Summary — Overview of insider activity trends in the scanned sector/market
2. •Methodology — Filters applied, time window, data sources
3. •Individual Company Profiles — One section per company using the output template
4. •Comparative Table — Side-by-side insider buying metrics
5. •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.