Watch Insider Trade Stocks

This website provides various insider trading reports that are created using sophisticate proprietary algorithm to reveal the secrets of insider trading activities. All reports are provided to traders and investors free of charge.

Free Insider Trading Reports

What is Insider Trading?

Many investors have heard the term Insider trading and usually associate it with illegal conduct. In fact, however, the term includes both legal and illegal conduct. The legal version is when corporate insiders (officers, directors, and beneficiary owners) buy and sell stock in their own companies. When corporate insiders trade in their own securities, they must report their trades to the SEC.

Illegal insider trading generally refers to insider buying or selling a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, nonpublic information about the security. Insider trading violations may also include "tipping" such information, securities trading by the person "tipped," and securities trading by those who misappropriate such information. See insider trading definition for more details.

Insider Trading is Seasonal

  Chart 1. 7-year Average Monthly Insider Buyers (2006 - 2012)

Month Unique Insiders i

Due to SEC regulations, insiders (company's officers, directors and any 10% beneficial owners of a public company) are prohibited from buying and selling their own company securities during certain blackout periods. The result is the seasonal pattern of insider trading activities. In Chart 1, we show the average number of unique insider buyers by month across a seven year period from 2006 to 2012. It is evident that more insiders buy their company shares in the months of March, May, August, and November. Understand that this seasonal pattern of the insider trading is important, as it will help us uncover the relationship between insider trading and stock market actions. From Chart 2 to Chart 7, we show the unique insider buyers by month and the seasonally adjusted figures in each of the years from 2006 to 2011. The results indicate a strong correlation between insider trading and stock market behavior.

  Chart 2. Monthly Insider Buyers 2006

Month, 2006 # Insider Buyers i Seasonal Adjusted
  January 1,064
  February 1,323
  March 1,340
  April 1,007
  May 1,968
  June 1,096
  July 1,244
  August 1,870
  September 1,130
  October 1,076
  November 1,535
  December 1,180

In 2006, we saw muted insider buying while the stock market was advancing without incident.

  Chart 3. Monthly Insider Buyers 2007

Month, 2007 # Insider Buyers i Seasonal Adjusted
  January 1,119
  February 1,282
  March 1,562
  April 1,067
  May 1,838
  June 1,338
  July 1,383
  August 2,908
  September 1,306
  October 1,326
  November 2,937
  December 2,105

More insiders came into the market in the last half of 2007 when the stock market started sliding. They seemed to be a little too early.

  Chart 4. Monthly Insider Buyers 2008

Month, 2008 # Insider Buyers i Seasonal Adjusted
  January 1,477
  February 1,893
  March 2,310
  April 1,331
  May 2,336
  June 1,749
  July 1,731
  August 2,286
  September 1,694
  October 2,004
  November 3,542
  December 2,316

Throughout the 2008 bear market, insider buying was heavy and persistent. In October and November of 2008, an unprecedented number of insiders bought their company shares when the market tanked more than 40% from its peak.

  Chart 5. Monthly Insider Buyers 2009

Month, 2009 # Insider Buyers i Seasonal Adjusted
  January 1,213
  February 2,081
  March 2,775
  April 946
  May 1,656
  June 1,343
  July 943
  August 1,351
  September 1,122
  October 955
  November 1,669
  December 1,363

In March of 2009, insiders once again aggressively bought shares when the DJIA dropped 54% from its peak value that was achieved on October 2007.

  Chart 6. Monthly Insider Buyers 2010

Month, 2010 # Insider Buyers i Seasonal Adjusted
  January 832
  February 1,216
  March 1,379
  April 886
  May 1,707
  June 1,455
  July 947
  August 1,829
  September 1,075
  October 761
  November 1,413
  December 1,226

In June of 2010, the market was down 10% from its recent high and insiders showed some modest buying interest.

  Chart 7. Monthly Insider Buyers 2011

Month, 2011 # Insider Buyers i Seasonal Adjusted
  January 795
  February 1,114
  March 1,358
  April 817
  May 1,548
  June 1,245
  July 713
  August 2,804
  September 1,511
  October 879
  November 1,672
  December 1,376

Insider buying activities remain muted since the stock market recovery in March of 2009. In August of 2011, however, the market was down 20% and insiders once again rushed into the market to buy shares.


In this study, we have shown that insider trading exhibits a seasonal pattern. In the absence of stock market turmoil, more insiders will buy their company stocks in May, August, and November than in other months of the year. The relationship between insider trading activities and the stock market can be revealed when the trading activities are scaled to the seasonal patterns. We have shown that more insider buyers will come out and buy shares when the stock market comes down. In fact, it is shown above that the more the market drops, the more insider buyers it attracts.

Why Monitor Insider Trading?

Never before has monitoring insider trading become so easy. Insiders (corporate officers, directors, and beneficiary owners) are now required to report to the Securities and Exchange Commission (SEC) within two business days after they trade stocks of their own companies. We report this vital insider buying and selling information to the public in daily, weekly, monthly, and real-time reports.

Insider trading analysis guru George Muzea wrote a book called The Vital Few Vs the Trivial Many: Invest with the Insiders, Not the Masses. (See link in page insider trading resources). He called corporate insiders "the vital few" and investor masses "the trivial many". By following the vital few, he made big profits in the stock market for himself and for his corporate clients. Most insiders including CEOs, CFOs make a living on a moderate salary (See management salary). Sale stock at a profit is an important source of income for many of them.

Note that insider stock trading activity should not be used as a simple technical indicator when deciding to buy or sell a stock. However, insider buying and selling activity is a good starting point to further investigate a company, either by analyzing the fundamental data of the company or by studying other insider trading related matters such as the stock trading history of the insider, the type of insider (officer or beneficiary owner) etc.

Real-time Insider Trading

Insider Officer Cluster Trading

Top Officer Buys of the Week

Top Officer Buys of the Month