Cluster Buy Alerts
Multiple insiders buying the same stock = high conviction signal
What are Cluster Buys?
Cluster buys occur when multiple insiders buy the same stock within a short time window. Academic research shows these generate +2.1% monthly alpha on average.
- • 2+ insiders buying within 14 days = cluster signal
- • CEO/CFO participation increases signal strength
- • Higher signal strength = stronger conviction
Period:
Min Signal:
Exchange:
Research Background: "Do Insiders Cluster Trades with Colleagues?" (Alldredge & Blank, Journal of Financial Research 2019) found that insider purchases within 2 days of peer purchases generated 2.1% monthly alpha.
CFO purchases show the highest predictive power for future returns among all insider roles.