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: Sign in to your TrendSpider account and navigate to the right side of the interface to select the Insider Trading widget from the list.
Step 2: Click on the “Add to the Sidebar” option to add the Insider Trading widget.
The Insider Trading widget will populate in the sidebar column as can be observed below:
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.
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.
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) |
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.
1. Significant Insider Selling:
In the below chart, a significant insider selling for cash can be observed for the last 12 months.
2. Modest Insider Selling:
In the below chart, modest insider selling can be observed for the past 12 months.
3. A Mix of Both:
In the below chart, a mix of both buying and selling can be observed for the past 12 months.
4. A Good Amount of Buying:
In the below chart, a good amount of buying can be observed for the past 12 months.
Insider Ownership Diagram
The insider ownership diagram displays the percentage ownership held by different insiders.
This diagram is clickable and you can filter the entities based on the ownership of shares.
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.
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.