Question 1

What is the institution × insider cross-signal?

Accepted Answer

It overlays two independent datasets — quarterly 13F holdings from tracked institutions and open-market Form 4 trades from corporate insiders — to show where both groups are buying (consensus accumulation), both selling, or diverging.

Question 2

How are the two axes measured?

Accepted Answer

Institutional breadth = the number of tracked funds that grew a position minus those that trimmed or exited it, diffed across each fund’s two most recent 13F filings. Insider breadth = the number of distinct corporate insiders buying minus selling on the open market over the last ~90 days.

Question 3

Why is the insider side mostly selling?

Accepted Answer

Corporate insiders sell for many non-signalling reasons (option exercises, diversification, taxes), so sells are common. Open-market insider buying is rarer and generally more meaningful — which is why a stock in the top-right “both buying” quadrant stands out.

Question 4

Is a divergence bearish or bullish?

Accepted Answer

It’s context. Funds accumulating while insiders sell is common and often benign; insiders buying while funds exit can flag a name the crowd has left. Treat this as a screen for further research, not a recommendation — 13F carries up to a 45-day lag.

Where funds and insiders agree.

About the cross-signal

What is the institution × insider cross-signal?

How are the two axes measured?

Why is the insider side mostly selling?

Is a divergence bearish or bullish?