Quantitative Signals & Scoring
Cluster signal
A pattern in which several distinct insiders at the same company buy within a short window, which historically predicts stronger forward returns than any single buy.
One executive buying might reflect personal liquidity, optimism, or a 10b5-1 plan. Three or four buying within a few weeks is far harder to explain away as noise: it signals a shared, bottom-up read on undervaluation. The cluster signal counts distinct insiders (not distinct trades) so that a single insider splitting one purchase into ten tickets does not fake a cluster.