> ## Documentation Index
> Fetch the complete documentation index at: https://docs.driven.ai/llms.txt
> Use this file to discover all available pages before exploring further.

# Insider Trading Signals

> How to read insider buying and selling in Driven: distinguish meaningful signals from noise, weigh cluster buys, and use insider activity to inform a thesis.

This guide covers reading insider activity, the buying and selling by a company's own executives and directors. Insider behavior can be a useful signal because insiders know their business better than anyone, but it has to be read carefully: not every transaction means what it seems to.

The Skill behind this workflow is [Smart Money](/skills/smart-money).

<Note>
  This guide is about reading legally disclosed insider transactions as an investment signal. It is not about trading on material non-public information, which is illegal. Driven works only with publicly disclosed filings.
</Note>

## When to use this

* Checking whether insiders are buying or selling a name
* Reading insider activity as a conviction signal
* Adding an insider check to a thesis
* Spotting unusual insider behavior

## Step 1: Pull the insider activity

```text theme={null}
Run Smart Money on [TICKER] focused on insider activity. Show recent insider buys and sells, who transacted, the size, and the context.
```

Example:

```text theme={null}
Show me recent insider activity for [TICKER]. Are executives buying or selling, and is there anything unusual?
```

## Step 2: Separate signal from noise

Not all insider trades carry the same weight. Ask the Agent to help interpret:

```text theme={null}
For this insider activity, what's likely meaningful versus routine? Distinguish open-market purchases from scheduled sales and option exercises.
```

Open-market purchases by senior executives tend to carry more signal than routine sales, which often reflect diversification or tax planning rather than a view on the stock.

## Step 3: Look for clusters

One insider buying is interesting; several buying together is more so:

```text theme={null}
Is there any cluster of insider buying at [TICKER], where multiple insiders bought around the same time?
```

## Step 4: Tie it to the thesis

```text theme={null}
Does the insider behavior support or contradict the investment case for [TICKER], and how much weight should it carry?
```

## Common mistakes

* **Reading every sale as bearish.** Insiders sell for many reasons unrelated to the outlook. Sales are weak signals.
* **Overweighting one transaction.** A single trade is thin evidence. Clusters and patterns matter more.
* **Forgetting the lag.** Insider transactions are disclosed after the fact; note the dates.

## Prompt variations

```text theme={null}
Find names in my watchlist with notable insider buying recently.
```

```text theme={null}
Show insider sentiment for [sector]: where are insiders net buyers versus net sellers?
```

## Related

* [Smart Money Skill](/skills/smart-money) — the workflow behind this guide
* [Track institutional holdings](/guides/screening/track-institutional-holdings) — the institutional counterpart
* [Data and coverage](/concepts/data-and-coverage) — the insider data behind this guide