Insider Selling Red Flags
Companies where both insiders and institutions are reducing positions, creating a divergence signal. While insider selling alone has many innocent explanations, combined insider + institutional selling may warrant closer examination.
Why This Matters
Simultaneous selling by insiders and institutions is not a prediction, but a trigger for additional due diligence. When both informed groups reduce exposure at the same time, the context and scale of their activity become important factors to examine alongside fundamental performance.
- -Currently tracking 50 divergence signals
Divergence Signals (Insider + Institutional Selling)
Data sourced from SEC EDGAR filings (Form 4, 13F, 10-K/10-Q). All filings are public domain. Scores and rankings are for informational purposes only.
| # | Company | Score | Date |
|---|---|---|---|
| 1 | FSLRFirst Solar | 60 | Jun 3, 2026 |
| 2 | TXNTexas Instruments | 60 | Jun 3, 2026 |
| 3 | FIXComfort Systems USA | 60 | Jun 3, 2026 |
| 4 | GLWCorning Inc. | 60 | Jun 3, 2026 |
| 5 | VICRVicor Corporation | 60 | Jun 3, 2026 |
| 6 | INODINNODATA INC | 60 | Jun 3, 2026 |
| 7 | LTHLife Time Group Holdings, Inc. | 60 | Jun 3, 2026 |
| 8 | NVTnVent Electric plc | 60 | Jun 3, 2026 |
| 9 | INODINNODATA INC | 60 | Jun 2, 2026 |
| 10 | GLWCorning Inc. | 60 | Jun 2, 2026 |
| 11 | TXNTexas Instruments | 60 | Jun 2, 2026 |
| 12 | LTHLife Time Group Holdings, Inc. | 60 | Jun 2, 2026 |
| 13 | NVTnVent Electric plc | 60 | Jun 2, 2026 |
| 14 | FIXComfort Systems USA | 60 | Jun 2, 2026 |
| 15 | VICRVicor Corporation | 60 | Jun 2, 2026 |
| 16 | VICRVicor Corporation | 60 | Jun 1, 2026 |
| 17 | TXNTexas Instruments | 60 | Jun 1, 2026 |
| 18 | FSLRFirst Solar | 60 | Jun 1, 2026 |
| 19 | FIXComfort Systems USA | 60 | Jun 1, 2026 |
| 20 | NVTnVent Electric plc | 60 | Jun 1, 2026 |
| 21 | LTHLife Time Group Holdings, Inc. | 60 | Jun 1, 2026 |
| 22 | NVTnVent Electric plc | 60 | May 31, 2026 |
| 23 | FIXComfort Systems USA | 60 | May 31, 2026 |
| 24 | VICRVicor Corporation | 60 | May 31, 2026 |
| 25 | TXNTexas Instruments | 60 | May 31, 2026 |
| 26 | FSLRFirst Solar | 60 | May 31, 2026 |
| 27 | LTHLife Time Group Holdings, Inc. | 60 | May 30, 2026 |
| 28 | NVTnVent Electric plc | 60 | May 30, 2026 |
| 29 | FSLRFirst Solar | 60 | May 30, 2026 |
| 30 | GLWCorning Inc. | 60 | May 30, 2026 |
| 31 | FIXComfort Systems USA | 60 | May 30, 2026 |
| 32 | TXNTexas Instruments | 60 | May 30, 2026 |
| 33 | TXNTexas Instruments | 60 | May 29, 2026 |
| 34 | NVTnVent Electric plc | 60 | May 29, 2026 |
| 35 | GLWCorning Inc. | 60 | May 29, 2026 |
| 36 | FSLRFirst Solar | 60 | May 29, 2026 |
| 37 | GLWCorning Inc. | 60 | May 28, 2026 |
| 38 | NVTnVent Electric plc | 60 | May 28, 2026 |
| 39 | VICRVicor Corporation | 60 | May 28, 2026 |
| 40 | FSLRFirst Solar | 60 | May 28, 2026 |
| 41 | LTHLife Time Group Holdings, Inc. | 60 | May 28, 2026 |
| 42 | NVTnVent Electric plc | 60 | May 27, 2026 |
| 43 | VICRVicor Corporation | 60 | May 27, 2026 |
| 44 | TXNTexas Instruments | 60 | May 27, 2026 |
| 45 | FSLRFirst Solar | 60 | May 27, 2026 |
| 46 | FIXComfort Systems USA | 60 | May 27, 2026 |
| 47 | LTHLife Time Group Holdings, Inc. | 60 | May 27, 2026 |
| 48 | LTHLife Time Group Holdings, Inc. | 60 | May 25, 2026 |
| 49 | FSLRFirst Solar | 60 | May 25, 2026 |
| 50 | VICRVicor Corporation | 60 | May 25, 2026 |
Understanding Insider Selling Signals
Insider selling alone is not necessarily a red flag — executives regularly sell shares for tax planning, diversification, or personal expenses. However, when insider selling is accompanied by institutional position reductions (visible in 13F filings), it creates a divergence pattern. These signals have a score of 50+ indicating moderate-to-strong alignment of selling activity across insider and institutional investors.
Insider trading data from SEC EDGAR Form 4 filings. Institutional holdings from quarterly 13F filings. Financial fundamentals from 10-K and 10-Q filings. All data is public domain and does not constitute investment advice.
Signal Score Methodology
Each signal receives a score from 0 to 100 based on the following components. Only signals scoring 40 or above are shown. Scores are computed from public SEC filing data and are for informational purposes only.
Number of unique insiders purchasing shares (Form 4). More buyers = higher score.
Net new institutional buyers from 13F filings. More net buyers = higher score.
Revenue growth (YoY) and profit margin from 10-K/10-Q filings.
Minimum display threshold: 40/100. Data sources: SEC Form 4 (insider trades), 13F (institutional holdings), 10-K/10-Q (fundamentals). All data is public domain.
Signal Types
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Frequently Asked Questions
What are smart money signals?
Smart money signals are cross-referencing indicators that combine multiple SEC filing data sources — insider trading (Form 4), institutional holdings (13F), and financial fundamentals (10-K/10-Q) — to identify stocks where well-informed investors are acting with conviction. When insiders, institutions, and financial metrics all point in the same direction, it may indicate meaningful information about a company's prospects.
How are smart money signals calculated?
Signals are computed by combining three independent data sources from SEC EDGAR: (1) insider buying/selling from Form 4 filings (last 30 days), (2) institutional ownership changes from 13F filings (quarterly), and (3) fundamental metrics from 10-K/10-Q filings (revenue growth, profit margins). Each signal type has a score from 0-100 based on the strength and alignment of these factors.
How often are smart money signals updated?
The underlying data updates at different frequencies: insider trading data (Form 4) is typically filed within 2 business days of a transaction, institutional holdings (13F) are filed quarterly within 45 days of quarter end, and financial fundamentals update with each quarterly earnings filing. Signal calculations run regularly to incorporate the latest available data.
What does a convergence signal mean?
A convergence signal indicates that corporate insiders are buying shares, institutional investors are increasing their positions, and the company's financial fundamentals are improving — all at the same time. This triple-positive alignment from three independent sources suggests broad agreement among well-informed parties that the stock offers value.
Should I buy stocks based on smart money signals?
No. Smart money signals are informational tools, not investment recommendations. While they highlight interesting patterns in SEC filing data, they should be one of many inputs in your research process. Insider selling can have innocent explanations, institutional moves may lag reality by 45+ days, and past patterns do not predict future returns. Always do your own research before making investment decisions.