Number of Insiders Buying: formula and how to read it

How many different insiders bought shares on the open market in 90 days. The number of different officers, directors and 10% owners who made an open-market purchase (SEC Form 4 code P) in the last 90 days. Several insiders buying in the same weeks is often read as stronger than one large purchase. Zero when none bought. Filter-only, so it is never scored.

Stock Meadow groups it under Company, and shows it in tables as Insider buyers.

Insiders buying = the number of different insiders with at least one open-market purchase (SEC Form 4 code P) in the last 90 days

Between July and September the CEO, the CFO and two directors each buy shares on the open market, so the count is 4. If the CEO buys three times she still counts once. The numbers are made up for illustration.

Zero means no insider bought. One is a single person's view, while two or more at about the same time is a cluster. The count says nothing about size, so read it together with insider net buying.

When Stock Meadow ranks stocks, a higher figure scores better.

• It counts people, not dollars: four small purchases look the same as four large ones.
• Only open-market purchases count. Share awards, option exercises and purchases through company plans do not.
• A new director or officer may buy shares to meet an ownership guideline rather than because they expect a rise.

How Stock Meadow handles gaps. Usually blank when insider trades haven't been loaded for the stock yet (a recent addition).

Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.

No scoring model uses it. It is a filter and a table column only.

Read about every scoring model on the scoring models page.

• Insider Net Buying: insiders' open-market buying minus selling over 90 days, as a share of the company's value.
• Congress Net Buying: purchases minus sales of the stock by members of Congress in 90 days.
• P/E Ratio (Price-to-Earnings): what you pay for each dollar of profit.

What is a cluster of insider buying?

Several insiders buying a company's shares within a short period. Because each buys with their own money, many investors see a cluster as more convincing than a single purchase.

Why can I only filter on insiders buying, not score it?

A count of people is a blunt measure and most companies have none, so Stock Meadow lets you filter on it and show it as a column but never scores it. Insider net buying, which weighs dollars against the company's size, can be scored.

Is a higher or lower Insider buyers better?

When Stock Meadow ranks stocks, a higher figure scores better. That is a ranking convention, so read Insider buyers alongside other measures and compare similar companies.

Why is Insider buyers blank for some stocks?

It is usually blank when insider trades haven't been loaded for the stock yet (a recent addition). Stock Meadow leaves the figure blank rather than guessing it.