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Track and interpret SEC Form 4 insider buying and selling activity across US-listed equities using the Finskills API.
---
name: Insider Trade Tracker
version: 1.0.2
description: "Track and interpret SEC Form 4 insider buying and selling activity across US-listed equities using the Finskills API."
author: finskills
metadata:
openclaw:
requires:
env:
- FINSKILLS_API_KEY
primaryEnv: FINSKILLS_API_KEY
homepage: https://github.com/finskills/insider-trade-tracker
---
# Insider Trade Tracker
Monitor SEC-reported insider buying and selling activity using the Finskills API
SEC endpoints. Surfaces unusual insider transactions, cluster buying signals,
and corporate officer behavior — one of the most reliable alternative data
signals for identifying high-conviction investment opportunities.
---
## Setup
**API Key required** — [Register at https://finskills.net](https://finskills.net) to get your free key.
Header: `X-API-Key: <your_api_key>`
> **Get your API key**: Register at **https://finskills.net** — free tier available, Pro plan unlocks real-time quotes, history, and financials.
---
## When to Activate This Skill
Activate when the user:
- Asks "is management buying their own stock?"
- Wants to check recent insider transactions for a specific company
- Asks for unusual insider buying or selling activity across the market
- Wants to understand what Form 4 filings mean
- Uses insider activity as part of their investment screening process
---
## Background — Insider Trading Signals
Corporate insiders (officers, directors, 10%+ shareholders) must file Form 4 with
the SEC within 2 business days of any transaction. Key signal principles:
**Insider Buying Signals:**
- Cluster buying (3+ insiders buying within 30 days): High conviction ⭐⭐⭐
- CEO/CFO buying (most informed executives): Strongest signal ⭐⭐⭐
- Open-market purchase (not options exercise): More meaningful ⭐⭐
- New director buying shortly after joining: Board confidence signal ⭐⭐
- Buying at or near multi-year lows: Turnaround signal ⭐⭐⭐
**Insider Selling Signals (interpret carefully):**
- Insiders sell for many reasons (diversification, tax planning, personal needs)
- Cluster selling by multiple insiders simultaneously: Warning signal ⚠️
- CEO/CFO selling > 50% of holdings: Significant concern 🚨
- Selling before known negative catalyst: Potential information advantage (SEC investigates) 🚨
- Pre-planned 10b5-1 sales: Less meaningful (scheduled in advance)
---
## Data Retrieval — Finskills API Calls
### 1. Symbol-Specific Insider Trades
```
GET https://finskills.net/v1/free/sec/insider-trades/{SYMBOL}
```
Extract:
- `filerName`: insider's name
- `filerTitle`: role (CEO, CFO, Director, 10% owner, etc.)
- `transactionType`: Purchase (P) or Sale (S) or gift (G) or option exercise (A)
- `transactionDate`: date of transaction
- `shares`: number of shares transacted
- `pricePerShare`: transaction price
- `totalValue`: total dollar value of transaction
- `sharesOwnedAfter`: total shares owned after transaction
- `filingDate`: date filed with SEC
### 2. SEC EDGAR Filings (for context)
```
GET https://finskills.net/v1/free/sec/filings/{CIK}
```
(If the company's CIK number is known)
Extract: recent 8-K, 10-Q, 10-K filings to provide context for insider timing
---
## Analysis Workflow
### Step 1 — Transaction Filtering
Filter the insider trade feed:
1. **Remove option exercises** (transactionType = 'A'): These are pre-planned, not discretionary
2. **Remove gifts** (transactionType = 'G'): Non-economic, planning-related
3. **Focus on Open-Market Purchases ('P') and Sales ('S')**: True economic decisions
### Step 2 — Insider Hierarchy Weighting
Assign signal weight by filer title:
| Role | Signal Weight |
|------|--------------|
| CEO | ⭐⭐⭐ Highest |
| CFO | ⭐⭐⭐ Highest |
| President / COO | ⭐⭐⭐ High |
| Director (Board) | ⭐⭐ Medium |
| VP / Other Officer | ⭐⭐ Medium |
| 10% Shareholder | ⭐ Lower (may have strategic not informational motivation) |
### Step 3 — Cluster Signal Detection
**Cluster Buy Signal** (high conviction):
- ≥ 3 distinct insiders purchasing within a 30-day window
- At least one C-suite (CEO/CFO) included
- Total purchase value > $500K combined
→ **Flag: CLUSTER BUY ⭐⭐⭐**
**Cluster Sell Signal** (caution):
- ≥ 3 distinct insiders selling within a 30-day window (excluding 10b5-1)
- Combined shares represent > 20% of their aggregate holdings
→ **Flag: CLUSTER SELL ⚠️**
**Size Signal:**
- Purchase > $1M by a single insider: High conviction
- Purchase > $5M: Exceptional conviction
### Step 4 — Transaction Context Analysis
Compare transaction price to current stock price:
```
Unrealized Gain/Loss % = (current_price - transaction_price) / transaction_price × 100
```
If CEO bought at $X and stock is still near $X: Insider is "underwater" → management's money at risk too (alignment signal).
If CEO bought and stock has already risen 30%: Signal may be partly priced in, but confirms thesis.
### Step 5 — Trend Summary
Compute rolling 90-day stats:
- Count of buy transactions vs. sell transactions
- Net buy/sell dollar value
- Number of unique insiders transacting
**Net Insider Sentiment Score:**
```
Score = (buy_transactions × buy_value) / max(sell_transactions × sell_value, 1)
```
- Score > 2.0: Net buying pressure — bullish insider signal
- Score 0.5–2.0: Balanced / neutral
- Score < 0.5: Net selling — caution
---
## Output Format
```
╔══════════════════════════════════════════════════════╗
║ INSIDER TRADE REPORT — {TICKER} ({DATE}) ║
╚══════════════════════════════════════════════════════╝
📌 INSIDER SENTIMENT (Last 90 Days)
Net Sentiment: {BULLISH / NEUTRAL / CAUTIOUS}
Buy Transactions: {n} ($${total_value}M)
Sell Transactions: {n} ($${total_value}M)
Unique Insiders: {n} buyers / {n} sellers
{CLUSTER BUY SIGNAL ⭐⭐⭐} OR {CLUSTER SELL WARNING ⚠️} if triggered
📋 RECENT TRANSACTIONS (Last 90 Days, open-market only)
Date Insider Title Type Shares Price Value
2025-04-05 John Smith CEO BOUGHT 50,000 $42.10 $2.1M
2025-03-28 Jane Doe CFO BOUGHT 15,000 $39.80 $597K
2025-03-10 Robert Johnson Director BOUGHT 8,000 $41.20 $330K
2025-02-15 Alice Chen VP Ops SOLD 12,000 $44.50 $534K
...
[Only showing open-market purchases and sales, excluding option exercises and gifts]
📊 SIGNAL ANALYSIS
Key Buy Signal: {Date}: {Name} (CEO/CFO) purchased ${amount}M at ${price}
→ {Interpretation / context — near 52-week low? Vs. current price?}
Ownership Context: After purchase, CEO holds {shares} shares (${value} at current price)
→ {high/medium/low} skin-in-the-game vs. annual compensation
Price Action Since: Stock is {+/-}% from average insider purchase price
⚠️ CAVEATS
• {Any pre-planned 10b5-1 sales noted in filings}
• {Any concurrent SEC investigation or litigation}
• {Acquisition-related transactions to exclude}
📈 OVERALL VERDICT
Insider Signal: {STRONG BUY / MILD BUY / NEUTRAL / MILD CAUTION / CAUTION}
Confidence: {High / Medium / Low}
Rationale: {2 sentence summary of why}
```
---
## Limitations
- Form 4 filings can be delayed up to 2 business days; very recent transactions may not appear.
- Insider selling is inherently ambiguous — always consider alongside valuation and fundamentals.
- This skill does not identify illegal insider trading; all transactions shown are SEC-reported.
- CIK numbers must be obtained from SEC EDGAR for company-specific filing lookups.
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