Now let's talk about another important metric we use in SIT named "Insider Activity Score" (shortly "IAS").

IAS is a dynamic value that updates continuously as new insider transactions are added to the SIT database.

As mentioned in our methodology, IAS is a weighted volume and we give a slightly higher priority to the quantity of transactions (0.6 coefficient against 0.4).

At SIT we calculate 4 variations of IAS for every company (stock):

  • All time
  • Last 6 months
  • Last 3 months
  • Last month

IAS is a value between 0 and 100. There is a reason why we use only the last 6 months segment for our calculations. We prepare a machine learning model that will be using exactly 1/3/6 months clusters for stock movement predictions. Our ML model will be learning on data of stocks that have at least 0.5 as an all-time IAS. As for today, 0.5 is a mean for existing data in our database.

At the moment we partially hide min/max values (quantity of transactions and amount of transactions) for calculations to not confuse users since the values can be adjusted in the future.

What does IAS mean for investors?

There are several explanations:

  • Existing strong corporate ethics regarding insider transactions (a good example is Assa Abloy company)
  • Insiders are active. It means something is constantly happening in a company.
  • Insider activity often correlates with stock movements. A high IAS strongly indicates that a stock may be attractive to investors of all risk profiles.
  • Not only does a high IAS value matter, but significant changes in IAS (e.g., a rapid increase over a short period) should also attract investor attention for multiple reasons.

Considerations Regarding Market Cap

As a rule, the highest IAS values usually belong to companies with either large or small capitalization. Small-cap companies may have a lot of sell transactions.

Since the main priority of the SIT platform is to reveal the hidden aspects of market dynamics, you should consider IAS as one of the most important metrics when analyzing stocks for your insider-oriented portfolio.

IAS plays a significant role when the SIT platform detects insider activity patterns like 'buy-the-dip'. Only the behavior of stocks with an IAS above the mean is considered important for training algorithms to identify such trends.

IAS is the primary filter on our stock screener.

We provide the IAS value for all users on the company details page. We intentionally sort companies on country-specific pages (like this one) by IAS in descending order to highlight the most compelling opportunities.