
Tools for Insider Trading Analysis - iswdp
http://www.insider-sleuth.com
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elliekelly
The name is misleading: most of the industry would call Form 4 data "insider
_transactions_ " since insider trading is a crime. The first time I saw this
link come up on HN I was at work and afraid to even click on it lest it
contain actual inside trade info.

Also, most (if not all) public company insiders* have something called a
10b5-1 Plan to prevent insider trading - and making a lot of this data pretty
irrelevant. Although the transactions might be recent they're probably
automated/scheduled transactions more closely related to personal wealth
management than anything to do with the company. If you look closely many of
the filings will have a footnote saying transactions were pursuant to a 10b5-1
Plan. Others you'll be able to see a common pattern of days for employees to
transact that are scheduled in advance. If you calculate the "cluster ranking"
for 2017 and 2018 you'll be able to predict when those same companies will
"cluster rank" again because the permitted transaction cycles are set by
company policy.

*edit: dropped an important word

~~~
iswdp
Technically the transactions are trades though. The terminology can get a bit
ambiguous.

~~~
elliekelly
Yes but the _phrases_ carry significantly different meaning. If someone walks
into my office and asks me how to report an insider transaction it's no big
deal. If someone walks into my office and asks me how to report an insider
trade my day just took a massive turn in the wrong direction.

