⬡ InsiderEdge · Scoring Methodology

How Scores Work

Every insider purchase gets a score out of 100, built from three things: how much they spent, what else was going on, and how recently they bought.

Three more things are measured and shown on each signal but left out of the score — your own history with that insider, what the recent headlines say, and how the stock is trading today. None of them is a fact about the purchase, and all of them change on their own. That is why a signal reads the same for everyone and does not drift over time.

Position Size
0–20 pts · counted

How much money the insider put in. Scored on a curve from $50,000 up to $50 million. Past $50M it maxes out — buys that large are rare enough that separating them further tells you nothing.

ConditionPointsLabel
≥ $50 million20 ptsSaturated — top of the scale
≈ $16 million17 ptsVery large
≈ $5 million13 ptsLarge
≈ $1.6 million10 ptsSubstantial
≈ $500,0007 ptsModerate
≈ $160,0003 ptsSmall
≤ $50,0000 ptsBelow the ingest floor
Track Record
0–20 pts · context only

How this insider’s earlier buys have done in your watchlist. Shown for context, not counted — it is measured from your trades, so it would be different for every user.

ConditionPointsLabel
Avg return ≥ 150%20 ptsExceptional
Avg return ≥ 80%17 ptsStrong
Avg return ≥ 30%14 ptsSolid
Avg return ≥ 0%10 ptsModest
Avg return < 0%4 ptsPoor
No prior trades10 ptsNeutral (default)
Signal Context
0–20 pts · counted

Who else was buying, and when. Other insiders in the same stock, the same insider buying repeatedly, and whether the purchase landed just before an earnings date. All of it is fixed by the filings, so none of it changes later. Adds up, capped at 20.

ConditionPointsLabel
CEO base score6 ptsOpen-market purchase
Political base score8 ptsSTOCK Act disclosure
Cluster buying+4–12 ptsScales with cluster size: 2×/3×/4×+ insiders
Insider accumulating+3–6 ptsSame insider, 2–3 or 4+ buys in 90 days
Bought ahead of earnings+3 ptsPurchase 1–21 days before an earnings date
Recency
0–20 pts · counted

How recently they bought. Insider signals have a shelf life — last week means more than two years ago.

ConditionPointsLabel
≤ 30 days ago20 ptsVery fresh
≤ 90 days ago16 ptsRecent
≤ 180 days ago12 ptsModerately aged
≤ 365 days ago7 ptsAging
≤ 730 days ago3 ptsOld
> 730 days ago1 ptHistorical
News & Catalysts
0–20 pts · context only

Keywords picked out of the stock's recent headlines, plus whether earnings fall in the next two weeks. Shown for context, not counted. We read the last few headlines, so a catalyst that shows today can be gone next week — that is a fact about the news cycle, not about the purchase.

ConditionPointsLabel
Near legislative vote+5 ptsLegislation / bill / committee in headlines
Record-size purchase+3 ptsLargest / record / first time in headlines
Pre-event timing+3 ptsAhead of / days before in headlines
M&A catalyst+3 ptsMerger / acquisition in recent headlines
Earnings catalyst+2 ptsEarnings / guidance / beat in headlines
Earnings within 2 weeks+2 ptsAn earnings date in the next fortnight
Regulatory catalyst+2 ptsFDA / approval / trial in headlines
Defense / government contract+2 ptsDefense / Pentagon / contract in headlines
AI / tech catalyst+2 ptsAI / datacenter in headlines
Upcoming announcement+1 ptPartnership / launch in headlines
Momentum
0–20 pts · context only

How the stock is trading today, plus analyst sentiment. Shown for context, not counted — it describes today’s market, not the filing, so it would change the score hour to hour. Useful for timing an entry.

ConditionPointsLabel
Day change ≥ +3%18 ptsStrong day
Day change ≥ +1%15 ptsPositive day
Day change ≥ 0%12 ptsFlat
Day change ≥ −1%8 ptsSlight pullback
Day change ≥ −3%5 ptsSelling pressure
Day change < −3%2 ptsHeavy selling
Analyst upside >20%+ 3 ptsBonus: strong analyst consensus
Analyst upside >10%+ 1 ptBonus: moderate analyst upside
Analyst consensus<0− 2 ptsPenalty: analysts bearish
No live data8 ptsNeutral pending quote
Signal Tiers
STRONG BUY
73–100 points
High-conviction entry. Consider full position size.
MODERATE
60–72 points
Solid signal. Partial position or wait for confirmation.
WATCH
49–59 points
Signal present but weak. Monitor for strengthening.
LOW
0–48 points
Weak signal. Historical reference only.
Levels

Insider's cost is what they actually paid. If they bought more than once in the last 90 days it is the average across all of those buys, weighted by size, so one filing does not misrepresent the whole position.

Analyst consensus is shown when analysts have published one more than 5% above the current price, with the number of ratings behind it. It is their figure, not ours. InsiderEdge does not forecast prices, so when there is no consensus the field is simply empty.

Risk level is a fixed 8% below the current price — a consistent reference across every signal, not a prediction.

InsiderEdge scores are a quantitative research tool, not financial advice. Scores are computed from publicly available filings and do not move with the market — a signal keeps the score it was given until the filing data behind it changes. The price and return figures shown beside a score are live. Past signal performance does not guarantee future results. Always conduct your own research before making investment decisions.

← Back to InsiderEdge