Buy Unusual Events Flashcards
Actionable Buy Brief
Highlights activity that our Director of Research feels is most likely to generate alpha on the long side. We started publishing Research Briefs in January 2008. We added the Actionable filter in mid-Jan. 2009
Informational Buy Brief
Highlights buying activity where: 1) our research team doesn’t find it compelling enough to make it “Actionable” or 2) there is activity that we believe isn’t as actionable as it may seem on the surface, i.e. buying as a result of a clause in an employment agreement.
Buy Inflection
Identifies accelerations in buying activity, either from insider selling to buying or no/some buying to lots of buying. Buying inflections are based on changes in the Company Score and the Company Score must rise to 8 or higher to generate an inflection.
Cluster Buying
When either of the following occurs: 1) the total number of unique buyers equals three and there are at least two unique officers buying, or 2) the total number of unique buyers is at least four and there is at least one unique officer making a purchase. For both cases we look at activity over 30-day periods and exclude 10% owners from the counts.
$100K CEO/CFO Buying
Buys by either a CEO or CFO that are over $100,000 and where the insider increases their ownership by more than 1%.
High IQ Buy
Buys of over $50,000 where the insider has an Insider IQ of 3+ stars (out of 4 total).
Buy Reversal
An insider who is buying for the first time after the same insider had previously sold stock. Specifically we look for the first time any insider makes a buy of greater than $25,000 after they had either: 1) made a sell greater than $50,000 or 2) made an exercise and sell greater than $50,000 - within the prior three to eighteen months.
Buy on Strength
Buys of more than $50,000 where the insider increases ownership by more than 1% and where the stock is up by more than 8% for the three months prior to the transaction. 10% owner transactions are not eligible.
Buy on Weakness
Buys of more than $50,000 where the insider increases ownership by more than 1% and where the stock is down by more than -15% for the three months prior to the transaction. 10% owner transactions are not eligible.
All Time High Score
This event is triggered when the Company Score reaches a new or ties a previous all-time high score; the Company Score must be above 5 for an all-time high score event to generate.
52 Week High Score
This event is triggered when the Company Score reaches a new or ties a 52-week high score; the Company Score must be above 5 for a 52-week high score event to generate.
Initial Off. Buy
The first buy at the company by an Officer-type (including CEOs & CFOs). The buy must be greater than $50,000.
Initial Dir. Buy
The first buy at the company by a Director-type. The buy must be greater than $50,000.
New Buy 10b5-1 Plan
Disclosures related to the initiation of a 10b5-1 (“pre-arranged”) trading plan involving the purchase of shares.
> 1.4 Trans Score Buy
A buy transaction that has a transaction score of greater than 1.4. Transaction scores are generated by our proprietary algorithm where we look at the position, size, type, % change in shares among other factors. Transaction scores range from -4 to +4.
