Many entrepreneurs dream of solving a problem, building a business and taking it public. Once individuals reach that point, public company employees must report on both the purchase and sale of their company shares – this information can be used by retail investors to get a feel for company sentiment and help solidify their investment decisions.
There are traders who have made a living off of insider trading information. Help provide an edge to your users by letting them know if employees are loading up on, or dumping, their own company shares.
SEC form 4 filings have made it easy to see into the minds of officers, directors, and shareholders with greater than 10% in a company that are trading based on information that is disclosed to the public, but may not be widely distributed. Many times these insiders have a special awareness of a company’s outlook.
Many traders would prefer to see what the high level insiders are doing with their stocks, rather than scour press releases and make interpretations about a company’s future. Use Benzinga insider trading data to supplement your due diligence.
Massive brokerages like TradeZero have integrated our Insider Trades data to help users understand what is going on under the hood at the worlds most actively traded companies!
|acquired_or_disposed||Benzinga rating calendar for security|
|conversion_exercise_price_derivative||URL to the Benzinga webpage|
|date_deemed_execution||Timestamp of the action HH:MM:SS format|
|date_transaction||Exchange the security is traded on|
|post_transaction_quantity||Company name of the security|
|price_per_share||Action on the price target (Raises, Lowers, Announces, etc)|
|security_title||Sell side firm action (Initiates, Reinstates, Upgrades, etc)|
|shares||Name of the analyst|
|transaction_id||Current price target for security|
|underlying_security_title||Prior rating for security|
|underlying_shares||Prior price target security|
|voluntarily_reported||Url to the Benzinga ratings page for the security|
Insider Trades FAQ
How can users use SEC form 4 data to supplement their trading strategy?
SEC Form 4 is a form that must be filed with the Securities and Exchange Commission (SEC) by insiders of a publicly-traded company whenever they buy or sell shares of the company’s stock. This information is publicly available and can provide valuable insights for traders looking to supplement their trading strategy.
First, traders can use Form 4 data to identify potential trading opportunities. For example, if a company’s insiders are buying large amounts of stock, it may be a sign that the company is performing well and the stock price is likely to rise. On the other hand, if insiders are selling large amounts of stock, it could be a sign that the company is facing challenges and the stock price may be headed for a downturn.
Second, traders can use Form 4 data to validate their own analysis of a company and its stock. If a trader’s analysis aligns with the insider trading activity, it can provide additional confidence in the trade.
Third, traders can use Form 4 data to monitor for potential red flags. If a company’s insiders are selling large amounts of stock while the company is reporting positive earnings, it may be a sign of underlying issues that the market is not aware of. In this case, traders may want to avoid the stock or even consider shorting it.
In summary, while insider trading data should not be relied on as the sole basis for a trading decision, studying Form 4 data can provide valuable insights for traders looking to supplement their trading strategy. By using Form 4 data to identify potential trading opportunities, validate their own analysis, and monitor for red flags, traders can gain a more well-rounded view of a company and its stock.