Nydar's insider cluster widget detects coordinated insider buying — 3+ insiders buying the same stock within a week
Nydar's Insider Clusters widget scans SEC Form 4 filings to identify stocks where 3 or more corporate insiders have purchased shares within a 14-day window, scoring each cluster from 0 to 100 on conviction based on insider seniority, dollar value, and date tightness. These coordinated buying patterns — known as cluster buys — are among the strongest signals in insider trading analysis, with academic research showing 7-13% outperformance over 12 months.
When a CEO, CFO, and a board director all reach into their own pockets to buy stock around the same time, they're telling you something. They know the business better than any analyst, and they're putting real money behind their conviction. Nydar surfaces those moments so you don't have to dig through SEC filings yourself.
Corporate insiders — officers, directors, and shareholders with more than 10% ownership — are required by the SEC to report their stock transactions on Form 4 filings. An insider cluster buy occurs when multiple insiders at the same company buy shares independently within a short timeframe.
Academic research has consistently found that insider cluster buys are one of the most predictive signals in equity markets. Seyhun's landmark study (1998) documented that stocks with cluster buying activity outperform the broader market by 7-13% over the following 12 months. Lakonishok and Lee (2001) confirmed this finding with additional evidence that purchases by top executives are more informative than those by large shareholders. The logic is straightforward: one insider buying could be routine, but three or more buying within two weeks suggests shared knowledge that the company is undervalued.
Academic references: Seyhun, H.N. (1998). Investment Intelligence from Insider Trading. MIT Press. Lakonishok, J. & Lee, I. (2001). "Are Insider Trades Informative?" The Review of Financial Studies, 14(1), 79-111. Jeng, L.A., Metrick, A. & Zeckhauser, R. (2003). "Estimating the Returns to Insider Trading." The Review of Economics and Statistics, 85(2), 453-471.
The Nydar threshold: 3+ insiders buying within a 14-day window. This filters out isolated purchases and surfaces only the highest-conviction patterns.
Each cluster card in Nydar shows a summary row that you can expand for full details. Here's what each element tells you.
Nydar's collapsed view shows the ticker symbol, conviction score badge, number of insiders involved, total dollar value purchased, and the date range of the cluster. This gives you a quick scan of how significant the cluster is without needing to expand.
Click any cluster in Nydar to expand it and see individual insider transactions. Each row shows the insider's name, their title (CEO, CFO, Director, etc.), the dollar value of their purchase, and the transaction date. Nydar weights seniority heavily — C-suite purchases carry more weight than director-level buys in the conviction score.
Conviction Score
Nydar's 0-100 score reflecting the strength of the cluster. Factors include number of insiders, their seniority, total dollar value, and how tightly grouped the purchase dates are. Very High (80+) signals the strongest patterns. High (60-79) is still meaningful. Moderate (below 60) warrants more caution.
Insider Count
The number of distinct insiders who bought within the cluster window. More insiders means broader internal consensus. Nydar shows a 5-insider cluster as substantially more significant than a 3-insider cluster.
Total Value
The combined dollar value of all insider purchases in the cluster. Nydar displays this in shorthand (e.g. $2.3M, $450K). Larger total values indicate insiders are making material commitments, not token purchases for optics.
Date Range
The span from the earliest to the latest purchase in the cluster. A tighter date range (2-3 days) suggests more urgency than purchases spread across the full 14-day window.
Prioritise high conviction scores
Focus on clusters that Nydar scores 80+ first. These represent the strongest alignment between multiple insiders and tend to have the best forward returns historically.
Check who is buying
Expand the cluster in Nydar and look at the titles. A CEO and CFO buying together carries more weight than three independent directors. C-suite insiders have the deepest operational knowledge of where the business is heading.
Cross-reference with the chart
Load the ticker in Nydar's chart widget to see where the stock sits technically. Insider clusters that form near support levels or after a significant drawdown tend to perform best — insiders are buying what they consider a discount.
Consider the dollar commitment
A cluster where insiders spent $5M collectively is a very different signal from one where they spent $50K. Large dollar amounts mean insiders have meaningful skin in the game and are not just making symbolic purchases.
Be patient with the thesis
Insider cluster outperformance is measured over 6-12 months, not days. These are not momentum trades. Insiders are often early, and the stock may drift sideways or even lower before the catalyst they're anticipating materialises. Nydar's conviction score helps you prioritise which clusters to hold through this patience period.
Insiders can be wrong. Having inside knowledge of a company's operations doesn't make insiders infallible. They can misjudge market conditions, competitive threats, or regulatory outcomes. Nydar's cluster detection improves the odds, but clusters are not guarantees.
Filing delays exist. Insiders must report within two business days of a transaction, but some file late. A cluster that Nydar surfaces as sudden may actually have formed over a longer period once filing dates are accounted for.
Not all insider buys are equal. Some purchases are part of pre-planned 10b5-1 trading plans rather than discretionary decisions. Planned purchases are less informative because they were set up months in advance and don't reflect current sentiment. Nydar's scoring algorithm still weighs these lower, but cannot fully distinguish them from discretionary buys.
Sector context matters. Insider buying in cyclical industries (energy, financials) may reflect macro timing rather than company-specific insight. Compare against sector-wide insider activity using Nydar's Insider Flow widget before attributing the signal to a single company's prospects.
SEC Form 4 Filings
Official insider transaction reports filed with the Securities and Exchange Commission. Required within 2 business days of any trade.
Market Data Feeds
Real-time and historical stock data used to calculate conviction scores and provide context for insider purchase timing.
Nydar's cluster detection updates as new SEC filings are processed
| Feature | Insider Clusters | Congressional | Institutional | Activist | Stock Info |
|---|---|---|---|---|---|
| Primary Focus | Coordinated insider buys | Politician stock trades | Fund position changes | Activist campaigns | Company fundamentals |
| Signal Type | Information advantage | Policy/regulatory edge | Smart money flows | Corporate change catalyst | Valuation metrics |
| Data Source | SEC Form 4 | STOCK Act filings | 13F filings | 13D/13G filings | Financial data feeds |
| Filing Delay | 2 business days | 45 days | 45 days (quarterly) | 10 days | Real-time prices |
| Historical Alpha | 7-13% over 12 months | Debated (STOCK Act) | 2-4% per quarter | 5-7% around events | N/A (reference data) |
| Time Horizon | 6-12 months | Weeks to months | Quarters | Months to years | Ongoing |
| Cross-Reference With | Chart, Earnings | Insider Clusters | Insider Clusters, Chart | Short Interest, Stock Info | All smart-money widgets |
Last reviewed: March 2026