Following Smart Money Through SEC Filings
Corporate insiders — CEOs, CFOs, directors, and large shareholders — have the deepest understanding of their company's prospects. When they buy shares on the open market with their own money, they're putting real capital behind their conviction. Academic studies consistently show that insider purchases outperform the market by 7-10% annually.
Not all insider buying is equal. The strongest signals: (1) Cluster buys — 3+ insiders buying within 14 days, (2) CEO/CFO purchases — C-suite has the best visibility, (3) Large purchases relative to compensation — meaningful skin in the game, (4) Buying during price weakness — insiders buying dips shows conviction, (5) First-time buyers — insiders who never bought before suddenly acquiring shares.
Insider selling is far less informative. Insiders sell for many reasons: diversification, taxes, personal expenses, pre-planned 10b5-1 sales. But insiders buy for only one reason: they believe the stock is going up. This asymmetry makes insider buying a more reliable signal than insider selling.
The scanner processes every Form 4 filed with EDGAR, extracts transaction details, and runs cluster detection algorithms. When a cluster buy pattern is detected (3+ insiders, 14-day window, open-market purchases), it triggers a convergence alert and boosts the ticker's score in the daily ranking.
Catalyst Edge scans 300+ SEC filings every day and publishes a ranked watchlist before market open.
Open ScannerA cluster buy is when 3 or more insiders at the same company file Form 4 purchase reports within a 14-day window. This pattern historically precedes positive catalysts and outperforms single insider purchases.
All insider transactions are filed as Form 4 on SEC EDGAR (sec.gov). Catalyst Edge automates this by scanning every Form 4, detecting patterns, and ranking tickers by insider activity alongside other catalyst signals.
On average, yes — insider purchases outperform by 7-10% per year. But individual insider buys can still lose money. The strongest signal comes from cluster buys combined with other catalysts (8-K events, sector momentum), which is what Catalyst Edge's convergence scoring measures.
You looked the term up. The console shows it firing on live tickers this morning.
Tier 1 setups touched +2% intraday 48.9% of the time across 374 tracked calls. Baseline for everything else: 40.9%. That is a +8.0 point edge, measured from the NEXT OPEN — the first price you could actually pay, not the prior close. We publish the misses too: https://catalystedgescanner.com/trust/
29 of 30 founding seats left. The price goes up when they are gone.
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