How to Track Insider Trading
Following what corporate insiders buy and sell is legal, public, and surprisingly informative. Here's how to do it — step by step.
"Insider trading" has two very different meanings. Illegal insider trading is trading on material, non-public information. Legal insider tracking — what this guide covers — means reading the public disclosures that insiders are required to file. Those filings are open to everyone.
Step 1: Understand what you're tracking
The data comes from SEC Form 4 filings — disclosures that officers, directors, and 10%+ owners must submit within two business days of trading their own company's stock. If you're new to it, start with our explainer on what SEC Form 4 is.
Step 2: Find the filings on SEC EDGAR
The SEC publishes every filing on its free EDGAR database. Search for a company, then filter by form type "4" to see each insider transaction — names, share counts, prices, and dates. EDGAR is authoritative but raw: one filing per document, no alerts, and little context.
Step 3: Read the transaction codes
Each trade has a code. The two that matter most:
- P — open-market purchase. The insider chose to buy with their own money.
- S — open-market sale. Can be routine (diversification, taxes) or a caution flag.
Grants (A) and option exercises (M) are compensation events, so they carry less signal than a voluntary purchase.
Step 4: Look for high-signal patterns
Not every trade is meaningful. Patterns worth flagging include:
- Cluster buys — several insiders at the same company buying within a short window.
- First-time buys — an insider purchasing shares for the first time, rather than a recurring sale.
- Large trades — purchases that are big relative to the insider's typical activity or salary.
- Senior buyers — a CEO or CFO buying tends to carry more weight than a junior officer.
Step 5: Follow insiders over time
Checking EDGAR by hand doesn't scale. A dedicated tracker lets you follow specific people, see their full history, and get notified the moment they file — so you're reacting in hours, not stumbling on it weeks later.
Follow the smart money automatically
Mimic turns SEC Form 4 filings into a real-time feed, flags cluster buys and large trades, and alerts you when the insiders you follow make a move.
Frequently asked questions
Is tracking insider trading legal?
Yes. Following disclosed insider trades is legal — Form 4 filings are public records. Illegal insider trading means trading on material non-public information, which is different from reading public disclosures.
Where can I see insider trades for free?
The SEC's EDGAR database publishes every Form 4 filing for free. Apps like Mimic reorganize that same data into a searchable feed with alerts.
What is the most bullish insider signal?
Many investors view an open-market purchase (code P) by a senior executive — especially a cluster of insiders buying at once — as among the strongest signals.