Insider distribution into strength

Bearish

Heavy insider selling while price is still elevated. Insiders see deterioration the market doesn't yet.

PRIMARY SOURCE

Seyhun 1998

Cohen-Malloy-Pomorski 2012

TYPICAL HORIZON

3-12 months

FACTORS USED

insidermomentum

What it means

Net insider activity sits in the bottom quintile — meaning officers and directors are selling heavily — while the stock price is still in the top 40% of its momentum distribution. Selling into strength is the textbook sign of insiders cashing out before bad news hits.

Why it works

Seyhun 1998 showed that the top decile of net insider selling predicts ~8% underperformance over 12 months. Cohen-Malloy-Pomorski 2012 separated "routine" 10b5-1 scheduled sales from "opportunistic" — the alpha is concentrated in opportunistic sales outside of earnings windows. Our pattern excludes the post-earnings window to focus on the opportunistic cohort.

Watch out

Founder-led companies sometimes have scheduled sales for diversification or estate planning that look heavy on aggregate but are mechanical. Cross-check by looking at the actual Form 4 filings: are sales clustered around earnings releases (routine) or scattered through the quiet periods (opportunistic)?

Live matches

38 tickers firing right now

TickerCompanySectorChangeScore

NFLXNetflix Inc.Communication Services-2.10%48[5–95]SNAPSnap Inc.Communication Services-1.86%47[5–95]INTUIntuit Inc.Technology-1.17%46[5–94]TMUST-Mobile USCommunication Services+2.41%44[5–92]SPOTSpotify TechnologyTechnology-0.61%44[5–92]ABNBAirbnb Inc.Technology-0.86%43[5–91]AKAMAkamai TechnologiesTechnology-0.39%43[5–91]PGRProgressive CorpFinancial Services-0.24%43[5–91]BXBlackstone Inc.Financial Services+0.52%41[5–89]AAPLApple Inc.Technology+1.31%41[5–89]GRABGrab HoldingsTechnology-1.28%41[5–89]RMDResMed Inc.Healthcare+4.18%40[5–88]DPZDomino's PizzaConsumer-1.84%40[5–88]BDXBecton DickinsonHealthcare-1.61%40[5–88]WMTWalmart Inc.Consumer Defensive-1.06%40[5–88]MCKMcKesson CorporationHealthcare-0.26%39[5–87]REGNRegeneron PharmaceuticalsHealthcare-0.68%39[5–87]IDXXIDEXX LaboratoriesHealthcare+1.29%39[5–87]ROSTRoss StoresConsumer-0.97%38[5–86]MAMastercard Inc.Financial Services-1.17%36[5–84]BKNGBooking HoldingsConsumer-1.91%36[5–84]PCGPG&E CorporationUtilities-1.35%36[5–84]ADBEAdobe Inc.Technology-0.75%35[5–83]ICEIntercontinental ExchangeFinancial Services+1.44%35[5–83]DASHDoorDash Inc.Technology-1.85%35[5–83]GDGeneral DynamicsIndustrials+0.89%35[5–83]MCOMoody's CorporationFinancial Services+1.69%34[5–82]WMWaste ManagementIndustrials-0.62%34[5–82]PEGPublic Service EnterpriseUtilities-1.02%34[5–82]BLKBlackRock Inc.Financial Services+1.55%34[5–82]SCHWCharles SchwabFinancial Services+3.73%34[5–82]BACBank of AmericaFinancial Services+1.99%34[5–82]GILDGilead SciencesHealthcare-1.26%33[5–81]NUENucor CorporationBasic Materials+1.44%32[5–80]CBChubb LimitedFinancial Services-1.28%32[5–80]DXCMDexCom Inc.Healthcare+1.59%32[5–80]NTRANatera Inc.Healthcare+1.60%30[5–78]SYKStryker CorporationHealthcare-0.55%30[5–78]

Disclaimer. Pattern matches are research signals, not investment advice. Past performance of an academic effect does not guarantee future returns. Forward-return tracking for Framler's own implementation begins 2026-05-16 after the calibration window closes.