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Glossary · Insiders and Congress

Cluster buy

Two or more insiders buying the same company’s shares on the open market within a short period.

Why it matters

One insider buying can be personal. Several doing it together, with their own money, is one of the better documented insider signals.

How to read it

Weigh it more when the buyers are senior (CEO, CFO, directors) and the amounts are large next to their pay.

Related

Form 4The filing a company insider must send the SEC within two business days of buying or selling the company’s shares.Insider activityShares bought or sold by a company’s own executives and directors, from SEC Form 4 filings.

In the Cluenex app, this explanation opens next to every cluster buy figure, with the live reading for the stock you are looking at. Open it in Cluenex