Factor families

Insider flow (Seyhun)

In plain English

When company executives buy their own stock with own money, that's a strong bullish signal. Selling is weaker as a bearish signal (insiders sell for many non-information reasons).

How it works

Seyhun 1998 (the canonical text on insider trading): open-market purchases by officers and directors predict positive abnormal returns. We pull SEC Form 4 filings, weight by transaction size, scale by company market cap. Score uses net dollar flow over rolling 90-day window — insider purchases push score up, sales push it down.

Where you see this in Framler
Insider factor card. /dashboard/insiders page.
Primary citation
Seyhun 1998, Investment Intelligence from Insider Trading

Related — Factor families

Quality factor (Novy-Marx)Value factor (Fama-French)Momentum factorPEAD (Post-earnings drift)Accruals signal (Sloan)Short interest (Asquith)

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Insider flow (Seyhun) — Framler glossary | Framler