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  • Analyzing the 95.79% Surge in SHFS Stock Price: What You Need to Know

    Analyzing the 95.79% Surge in SHFS Stock Price: What You Need to Know
    SHFS Stock Analysis Concept

    Analyzing the 95.79% Surge in SHFS Stock Price: What You Need to Know

    The SHFS stock has recently seen a remarkable surge, with its price escalating by 95.79% to reach $4.19, accompanied by an impressive trading volume of 43,124,612 shares. This article delves into the key reasons behind this significant increase, and provides a comprehensive analysis of potential risks and institutional trading patterns that investors should consider.

    SHFS Stock Price and Volume Trends
    SHFS Stock Price and Volume Changes – Last 3 Months

    Company Overview: Safe Harbor Financial

    Safe Harbor Financial, trading under the ticker SHFS, is a fintech leader that provides financial and banking services tailored to the regulated cannabis industry. Amid a landscape where traditional financial institutions often shy away from cannabis-related businesses, SHFS plays a crucial role in offering compliant, scalable financial solutions.

    Strategic Partnership with FundCanna: A Catalyst for Growth

    On April 17, 2025, Safe Harbor Financial announced a strategic partnership with FundCanna, aimed at expanding access to capital for cannabis operators. This partnership capitalizes on the strengths of both entities, facilitating a mutual referral system where each party introduces clients to the other for various financial solutions. The collaboration addresses the critical cash constraints faced by cannabis operators by providing seamless funding and banking solutions, which may have contributed to the recent surge in SHFS’s stock price.

    Trading Volume and Market Dynamics

    The trading volume for SHFS stock reached 43,124,612 shares, significantly higher than its average. This surge in volume could be indicative of increased institutional interest or strategic trading maneuvers. In many cases, such a dramatic increase in trading volume, absent of substantial insider trading or stock buybacks, suggests possible involvement by large institutional investors seeking to capitalize on short-term movements or strategic news.

    Analysis of Institutional Trading Patterns

    While there are no explicit indicators of insider trading or stock buybacks at this time, the surge in SHFS stock could reflect strategic movements by institutional investors looking to position themselves favorably in anticipation of the long-term benefits from the partnership with FundCanna. The absence of clear disclosures encourages speculation but also highlights the importance of examining patterns in trading to understand potential motives.

    Potential Risks for Investors

    Investors should remain cautious as significant stock price increases often come with heightened risks. Factors to consider include the inherent volatility within the cannabis industry, regulatory hurdles that could impact financial operations, and the potential that this recent upward movement could be speculative. Diversification and a thorough understanding of market dynamics remain key strategies in mitigating these risks.

    Industry Trends and Outlook

    The cannabis industry’s financial landscape is rapidly evolving, with fintech solutions like those offered by SHFS becoming increasingly vital. This partnership positions SHFS favorably to capture market share in a challenging economic environment where traditional banks are less likely to engage.

    Conclusion

    In summary, while the impressive 95.79% surge in SHFS stock price may be buoyed by strategic partnerships and potential institutional trading, it is crucial for investors to perform due diligence. As the cannabis financial landscape continues to evolve, SHFS’s positioning and proactive strategic maneuvers could present promising opportunities, albeit with inherent risks that necessitate careful consideration.

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  • ADGM Stock Price Surges Over 100%: Detailed Analysis of Adagio Medical’s Breakthrough News

    ADGM Stock Price Surges Over 100%: Detailed Analysis of Adagio Medical's Breakthrough News
    ADGM Stock Analysis Concept

    Introduction: ADGM Stock Price Surge

    Adagio Medical Holdings, Inc. (Nasdaq: ADGM), a prominent name in the field of cardiac arrhythmia treatment technologies, has witnessed a remarkable surge in its stock price, climbing by an astonishing 103.64% to $1.78. This surge is not just a numerical achievement but a reflection of significant developments within the company. The recent breakthrough involves the U.S. Food and Drug Administration’s (FDA) Breakthrough Device designation for Adagio’s vCLASTM Cryoablation System.

    ADGM Stock Price and Volume Trends
    ADGM Stock Price and Volume Changes – Last 3 Months

    FDA Breakthrough Device Designation: Catalyst for ADGM Surge

    On April 17, 2025, the announcement of FDA’s Breakthrough Device designation for the vCLASSM Cryoablation System provided a substantial catalyst for the stock’s growth. This designation highlights the system’s potential to offer a more effective treatment for drug-refractory ventricular tachycardia, a condition posing significant challenges to cardiac health. As Todd Usen, CEO of Adagio Medical, stated, this recognition emphasizes not only the technological innovations but also the unmet needs in cardiac treatment, significantly enhancing the company’s credibility and investor interest.

    Company Overview and Industry Trends

    Adagio Medical Holdings operates at the cutting edge of catheter ablation technologies, aiming to enhance the safety and effectiveness of treatments for cardiac arrhythmias. The company’s proprietary Ultra-Low Temperature Cryoablation (ULTC) technology underpins its product offerings, positioning it as a leader in medical innovations for cardiac health. In the broader context, the medical devices industry is experiencing accelerated growth, fuelled by technological advancements and increasing prevalence of cardiac and chronic diseases. The global market size for medical devices is projected to continue expanding, presenting a ripe landscape for Adagio’s innovative solutions.

    Insider Trading and Stock Buybacks: Missing Elements

    Despite the significant surge in stock price, it is crucial to mention that there is no available data pointing towards recent insider trading or stock buybacks in relation to ADGM. Generally, the absence of insider trading can be perceived as a balanced indicator—it avoids potential conflicts of interest where insiders might unduly benefit from proprietary knowledge. Similarly, the lack of immediate buybacks could indicate financial prudence, possibly keeping resources available for further development amidst regulatory breakthroughs.

    Institutional Trading Patterns and Investor Sentiment

    In scenarios where stocks witness sudden upticks without explicit insider activities or buyback programs, institutional trading patterns often play a pivotal role. The spike in ADGM’s volume to over 114.6 million shares suggests the potential involvement of institutional buyers responding to the strategic significance of FDA’s designation. Such trading patterns might imply a positive long-term outlook perceived by large investors, amplifying retail investor sentiment and market momentum.

    Analysis of Potential Risks for Investors

    Despite the optimistic developments, investors must remain cautious. Regulatory designations like the Breakthrough Device status, while promising, bring with them the scrutiny of stringent follow-up requirements and ongoing regulatory compliance costs. Furthermore, while the designation promotes expedited review processes, actual market entry and adoption are contingent on successful trials, pricing strategies, and competition in the sector. Consequently, there’s inherent risk should any of these elements not align with current plans.

    Trading Volume, Historical Patterns, and Market Implications

    Beyond the price surge, the trading volume reaching 114,615,840 shares underscores an amplified market interest and strong liquidity. Historically, similar patterns of rapid volume increase following advantageous regulatory announcements have led to sustained price adjustments. However, investors should scrutinize subsequent trading days for consistency as excessive short-term volumes might retract post initial euphoria.

    Conclusion: Strategic Considerations for Investors

    The impressive rise in ADGM’s stock price highlights the significant impact of strategic regulatory achievements on investor perception. As Adagio Medical continues to navigate the post-designation landscape, stakeholders must monitor how it capitalizes on FDA’s recognition to achieve operational milestones. While the stock’s prospects appear favorable, balanced diversification and vigilant risk appraisal remain pivotal for potential investors eyeing entry or expansion in this promising sector.

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  • SXTC Stock Price Surges 116%: In-Depth Analysis of Recent Market Movements

    SXTC Stock Price Surges 116%: In-Depth Analysis of Recent Market Movements
    SXTC Stock Analysis Concept

    SXTC Stock Price and Volume Trends
    SXTC Stock Price and Volume Changes – Last 3 Months

    Understanding the SXTC Stock Price Surge

    The recent surge in SXTC stock has caught the attention of many investors. On October 2023, SXTC saw its stock price rocket by 116%, reaching a new height of $2.16. The trading volume spiked to 51,451,474, indicating significant market activity.

    Company Overview: SXTC

    SXTC, a prominent health technology company, focuses on innovative solutions in the pharmaceutical sector. Despite its niche presence, SXTC’s strategic initiatives have positioned it for growth within its industry.

    Analyzing the Surge: Potential Factors

    Without any detailed news releases or disclosures, the factors driving SXTC’s stock surge remain speculative. Typically, such significant fluctuations might indicate institutional trading patterns or market sentiment shifts. Investors should consider both possibilities as they assess investment risks.

    Institutional Trading Patterns

    The absence of insider trading or stock buybacks during this surge suggests that institutional trading might be at play. Large-volume trades often involve institutional investors leveraging significant capital to move the market in a favorable direction. This pattern, lacking insider buy/sell activities or company buyback initiatives, raises questions about the source and sustainability of this surge.

    Comparing Historical Trading Patterns

    Historically, SXTC has experienced little volatility, making this sudden increase noteworthy. Comparing the current situation with similar past patterns can reveal that this may be attributable to temporary speculative interest rather than a long-term value shift.

    Examining Market Dynamics and Volume

    The spike in SXTC’s trading volume, reaching 51,451,474, far exceeds its average, highlighting intensified market interest. Such trends are often driven by speculative trading or potentially algorithmic trading strategies implemented by large financial institutions. Understanding these dynamics can provide insights into short-term volatility risks.

    Risks for Retail Investors

    While the SXTC stock surge can present opportunities for investors, it also introduces significant risks. Retail investors should remain cautious, as surges without clear fundamental support might lead to increased volatility and potential downturns.

    Industry Context and Trends

    In the broader health technology sector, innovation drives significant interest, often causing rapid stock movements. However, it’s crucial for investors to align stock investment decisions with fundamental financial analyses and long-term strategic planning rather than reactionary trading.

    Conclusion and Investor Recommendations

    In light of the recent SXTC stock price surge, investors should carefully monitor the company’s announcements, industry trends, and potential patterns of institutional trading. While opportunities exist, the associated risks cannot be overlooked. Delving into industry reports, shareholder communications, and financial statements will equip investors with a better understanding of potential value drivers or risk factors.

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  • MSGM Stock Surge: Analyzing the 145.54% Increase in Motorsport Games’ Stock Price

    MSGM Stock Surge: Analyzing the 145.54% Increase in Motorsport Games' Stock Price
    MSGM Stock Analysis Concept

    Analyzing the Massive Surge in Motorsport Games’ (MSGM) Stock Price

    Motorsport Games Inc. (NASDAQ: MSGM) has recently caught the attention of investors with a remarkable surge in its stock price, skyrocketing by 145.54% to a current price of $2.75. This unexpected rise, accompanied by an increase in trading volume to 35,902,054, warrants a detailed examination of the factors contributing to this surge, the possible institutional trading patterns, and the inherently associated investment risks.

    MSGM Stock Price and Volume Trends
    MSGM Stock Price and Volume Changes – Last 3 Months

    Understanding Motorsport Games and Its Industry Position

    Motorsport Games Inc., a prominent racing game developer and publisher, has built its reputation on developing and publishing authentic simulation racing titles, including the well-regarded Le Mans Ultimate. Additionally, the company has expanded into the esports ecosystem with platforms such as rFactor 2 and KartKraft, bolstering its offering for a competitive advantage in the rapidly growing virtual racing industry. The company’s recent release of Le Mans Ultimate in Early Access demonstrates its ongoing commitment to delivering high-quality gaming experiences.

    Compliance with Nasdaq and Strategic Investments: Catalysts for the Surge

    One of the pivotal announcements that likely sparked investor interest in MSGM’s stock is the company’s recent announcement of regaining compliance with Nasdaq’s stockholders’ equity requirement, as noted on Globe Newswire on April 17, 2025. CEO Stephen Hood’s statement on the momentum gained through compliance, coupled with strategic investments, has reinforced investor confidence.

    Particularly noteworthy is the $2.5 million strategic investment led by virtual reality leader Pimax. This move not only strengthens the company’s financial position but also provides resources to accelerate product development, a critical factor in its compliance regain.

    In-Depth Analysis of Institutional Trading Patterns

    While there isn’t explicit insider trading or significant stock buyback activity on record affecting the stock’s movement, the surge in MSGM stock raises questions about potential institutional trading patterns. The large trading volume of over 35 million shares suggests strong institutional interest. These patterns often indicate a strategic position by hedge funds or investment firms anticipating future earnings growth driven by recent regulatory compliance and technological advancements in the racing game sector.

    Investment Risks and Considerations

    Despite the positive catalysts, investors should tread cautiously. The gaming industry, especially niche sectors like racing simulations, carries inherent volatility risks. The success of MSGM’s future products and esports expansions depends heavily on consumer acceptance and technology integration, particularly in collaborations like those with Pimax.

    Also, forward-looking statements from the company highlight expectations that may not materialize if market conditions change. Retail investors should be aware that current market sentiment may shift, and a high degree of volatility in the stock price is expected in the short term.

    Conclusion: A Balanced Outlook

    In summary, Motorsport Games’ (MSGM) stock surge reflects a confluence of strategic business maneuvers, compliance achievements, and potential institutional positioning. However, retail investors should evaluate the presented opportunities against possible economic shifts and industry-specific challenges. The exciting developments at MSGM underscore the importance of strategic investments, forward-thinking management initiatives, and risk-adjusted investment strategies.

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  • [v2.3.0] API Release Note

    New API Releases

    Insider Transaction News API

    An API has been launched that allows you to retrieve news content based on data analyzed from insider transactions.

    Stock Market Transfer API

    An API has been released to check information about the pre-listing market.

    Company Subsidiary Info API

    An API has been launched to retrieve information about subsidiaries of listed companies.

    API Changes

    New items have been added to the Close Price Data API.

    [Changed Items]

  • [03/26/25] New Update: Launch of the U.S. Politician Transaction Widget & More

    [03/26/25] New Update: Launch of the U.S. Politician Transaction Widget & More

    [WG] Want to Follow Nancy Pelosi’s Trades? The U.S. Politician Trading Widget v1.0.0 is Here!

    They say politics is just a side hustle—how about following Nancy Pelosi’s trades?

    Now, you can easily track stock transactions made by U.S. politicians and analyze trades related to the committees they belong to.

    • Top-performing stocks held by politicians

    • Stocks politicians are paying attention to

    • Stocks related to sectors overseen by political committees

    • Latest transactions of key politicians

    Check out Politician Transaction Widget →

    [Data Labs] Insider Transaction News Goes Live—And Stock Prices Follow!

    Does insider transaction news actually impact investment decisions?

    Now, you can check how much stock prices have risen after news about insider transactions is published.

    To support better investment decisions, we now provide recent stock prices, average insider purchase prices, and transaction amounts directly within the insider trading news section. Our goal is to enhance the feature so that you can invest using just the news alone.

    Explore Insider Transaction News →

    [Data QC] Corrected Disclosure Data Now Available with Waiker’s Data QC System

    Because disclosure data is manually entered, errors occur countless times daily. While some are corrected through revised disclosures, many remain uncorrected, making it difficult to ensure data integrity using raw parsed data alone.

    To address this issue, Waiker has been providing error codes for detected disclosure errors. With this update, we now provide not only error codes but also corrected values, affected fields, and detailed error messages!

    • AS-IS: Disclosure Error Detection → Provides an Error Code
    • TO-BE : Disclosure Error Detection → Provides an Error Code → Provides Corrected Values

    While many stock data providers display disclosure data as-is despite potential errors, Waiker goes further by offering detailed error information and corrected values, ensuring higher data reliability.

    Check out the Developer Center →

    [BDR] New Data Additions

    This update also brings new datasets to BDR:

    • Insider Transaction News API: Get updates on companies involved in insider transactions.

    • Subsidiary API: Retrieve information on a company’s subsidiaries.

    • Market Relisting API: Identify stocks that have changed their listing market.

    Access the API Guide →

    Preview Data in API Viewer →

  • [02/26/25] Updates including the launch of Insider Transaction News

    [02/26/25] Updates including the launch of Insider Transaction News

    Hello, this is Waiker team with the announcement of our second release of 2025.

    [Data Lab] Want to Uncover the Meaning Behind Hidden Trades? ‘Insider Transaction News’ Launched

    We received feedback from users who were curious about whether insider trades held any significant meaning and what the recent trends among insiders were.

    Reading through all the news articles to find reasons behind these trades can be time-consuming. To help with this, Waiker uses AI technology to gather and analyze essential information related to trades and summarize it into concise articles.

    Insider Transaction News will provide compact insights from insider trading data, recent trends, and AI expert analyses.

    View Insider Transaction News →

    [Data Lab] The Secret of Top Investors: ‘Insider Transaction Screener’ Launched

    Discover insights from real-time insider transaction data using the Insider Transaction Screener.

    You can search by ticker, stock, insider name, and more, along with filters suggested by Waiker’s expertise. This tool is designed to help uncover valuable data-driven insights. A 7-day free trial is available now, so try it out today.

    Explore Insider Transaction Screener →

    Other Updates

    [Data Lab] Explore AI-Powered Services in the Market Data Lab

    Try out various features and datasets, including Waiker News, Waiker AI vs. LLM Comparison Service, and the Insider Transaction Screener.

    If you find Waiker’s experiments interesting, sign up to receive notifications for upcoming experiments.

    Go to Data Lab →

    [BDR] New Datasets Released in This Update

    • A new API for checking the composition of passive fund holdings has been added to BDR.

    • A new API allows you to view monthly insider buy/sell ratios.

    • View API Guide →

    • Preview Data in API Viewer →

    [Homepage] Now You Can Chat with Us in Real Time

    Click the chat button in the lower right corner of the homepage for quick and easy support.

    The Waiker team will assist you as quickly as possible with service usage, product purchases, and other inquiries.

    Contact Us →

    [Homepage] Check Release Notes in the Developer Center

    A new Release Note page has been added to let you easily track new features, improvements, and important announcements all in one place.

    View Release Notes →

  • [v2.2.0] API updates

    New API Release

    Monthly Insider Buy/Sell Ratio API
    A new API has been released that provides the monthly buy/sell ratio based on insider trading activities.

    Passive Fund Constituents API
    This API allows users to view the holdings of institutional investors’ passive funds.

    Institutional Investor API Updates

    Name Change:

    Previous: Active Institutional Investor → Now: Institutional Investor

    Endpoint Changes:

    • Base address for institutional investors:
      • Previous: /v1/basic/active-transaction → Now: /v1/basic/institution-transaction
    • 1-Year Profit Rank:
      • Previous: /investor/list → Now: /year-profit-rank
    • Holding Stocks Rank:
      • Previous: /most-held → Now: /most-held-rank
    • Portfolio Weight:
      • Previous: /guru/most-held → Now: /most-held-weight
    • Recent Quarterly Transactions:
      • Previous: /guru/recent-quarter-picks → Now: /recent-quarter
    • MDD:
      • Previous: /guru/mdd → Now: /mdd
    • Stocks Below Average Institutional Price:
      • Previous: /cheaper-than-institution → Now: /cheaper-than-average-price

    Deprecated API:

    The “Key Insider Transactions Briefing” API has been deprecated.

  • How to Utilize Passive Fund Holdings Data?

    Today, we would like to introduce our newly released Passive Fund or ETF (Exchange-Traded Fund) holdings data and discuss how to use this data effectively.

    What is Passive Investing?

    Photo by Precondo CA on Unsplash

    First, passive investing is an investment strategy that seeks to track the performance of a specific index or benchmark. Unlike actively managed funds, passive funds don’t involve portfolio managers actively selecting stocks or timing the market. Instead, they simply reflect the market index.

    Commonly known ETF products fall under passive investing and are typically associated with lower management fees and the potential for stable, long-term returns.

    1. Cost Efficiency: Passive funds generally have lower management fees compared to active funds, positively impacting investors’ long-term returns.

    2. Transparency: Since these funds track the the entire market or a specific index, the composition of the investment portfolio is clear and transparent.

    3. Diversification: Investing in a wide range of assets allows effective risk diversification across different stocks or industries.

    Market Shift: From Active Funds to Passive Funds

    Recent Passive Fund Trends

    Traditionally, fund managers have preferred active investment strategies. However, as the graph above shows, passive fund growth has surged in recent years.

    ETFs, in particular, offer investors convenient access to various asset classes, attracting both individual and institutional investors.

    Even in Korea, retail investors investing in U.S. markets have become familiar with tickers like SPY and QQQ, reflecting the growing popularity of passive investing.

    How to Use ‘Passive Fund Holdings’ Data?

    Example: Passive Funds Tracking the S&P 500

    The first way to utilize Waiker’s Passive Fund Holdings Data is by easily identifying ETFs and index funds that track a specific index.

    The image above shows search results for passive funds that track the S&P 500 or its derivatives. With Waiker’s data, you can easily view a list of passive funds following the index and gain quick insights into their size (assets, liabilities, etc.).

    Second Use Case: Identifying Tracking Errors

    Waiker’s data also provides the fund’s Net Asset Value (NAV), making it easier to calculate tracking errors. This allows you to conveniently apply trading strategies based on the difference between market prices and NAV.

    Tracking error is a crucial metric that shows how faithfully a fund replicates its target index. A lower tracking error means the fund reflects the index more accurately, which enhances investor confidence.

    Third Use Case: Utilizing Rebalancing Dates

    Index providers recalculate and manage the composition of the index on predetermined dates, such as quarterly or semi-annually.

    Inclusions and exclusions of specific stocks in an index can be interpreted as major positive or negative signals, making it important for investors to monitor these changes and dates carefully.

    The following example shows the holdings of a specific ETF. As of May 31, 2023, ProShares UltraPro QQQ held 1,249,343 shares of Tesla.

    ETF Holdings Data

    While passive funds primarily track specific indices, the composition and weighting of holdings can vary by fund.

    For instance, while the S&P 500 consists of 503 stocks, an actual fund might only hold 501 stocks. Therefore, understanding how many funds hold specific stocks, and to what extent, can help estimate potential buying or selling volumes on rebalancing dates.

    Passive Investing: Beyond Market Average Returns

    While passive investing is generally a strategy aimed at achieving market-average returns, passive fund data has evolved beyond that purpose.

    By applying precise data analysis, investors can optimize quantitative investment strategies using ETFs.

    In this article, we briefly introduced several strategies:

    1. Listing passive funds that track specific indices

    2. Optimizing ETF selection using tracking error analysis

    3. Developing precise investment strategies based on rebalancing timing

    How are you using ETF data? If you have your own passive investment strategies, feel free to share them!

    John C. Bogle:

    “Don’t look for the needle in the haystack. Just buy the haystack!”

  • Cluster Trading Analysis on Insider Transactions

    What is Cluster Trading?

    Cluster trading refers to the scenario where insiders of a company engage in similar transactions (buying or selling) within a specific period. When insiders, who have deeper knowledge of a company’s internal matters, engage in such actions, their trading behavior can provide useful insights into the company’s future prospects, potentially influencing stock prices. Furthermore, if multiple insiders simultaneously engage in transactions in the same direction, it can increase the reliability of the information from those insider trades.

    This hypothesis was empirically tested using insider trading data from Waiker.

    Analytical Method

    1. Definition of Cluster Trading:
      • A cluster trade is defined when at least 4 insiders trade in the same direction (buying or selling) within 30 days of the initial insider trade date.
    2. Performance Measurement:
      • The performance of stock price is tracked for up to 60 trading days following the initial insider trade date to calculate cumulative returns.
    3. Cluster vs Non-Cluster:
      • Cluster trades are compared with non-cluster trades (defined as insider trades that do not meet the 4 insiders threshold).
      • Average cumulative returns for both cluster and non-cluster trades are calculated for comparison.
    4. Comparison of Results:
      • The performance of cluster trades is compared with non-cluster trades over various timeframes (20, 40, 60 trading days) to analyze the potential benefit of cluster trading.

    Results of the Analysis

    • Cluster Trading Outperforms Non-Cluster Trading:
      • Non-cluster trades exhibit lower returns compared to cluster trades at 20, 40, and 60 trading day intervals (as seen in the blue-highlighted cells in the table below).
      • Annualized Returns:
        • At the 20 trading-day mark, cluster trading yields 11.31% higher returns than non-cluster trading.
        • At the 40 trading-day mark, cluster trading outperforms by 14.53%.
        • At the 60 trading-day mark, cluster trades result in 9.05% higher returns.
    • Cluster Trades Show Consistent Performance Over Time:
      • Cluster trades demonstrate a steady performance over time, while non-cluster trades do not show similar long-term results.
    • Optimal Holding Period:
      • The best performance for cluster trades occurs with a 20 trading-day holding period, which indicates that the value of the insider information from cluster trading diminishes over time.

    Key Findings

    • Cluster Trading Signals:
      • When 4 or more insiders engage in buying transactions within the past month and there are no selling trades, the likelihood of a positive performance is high.
    • Cluster Trading Stability:
      • Cluster trades tend to provide more stable and consistent returns than non-cluster trades.

    Performance Summary:

    Cluster PeriodNumber of InsidersSample SizeBuy/Sell20-Day Avg. Return (Annualized)40-Day Avg. Return (Annualized)60-Day Avg. Return (Annualized)
    Cluster Trading4 Insiders32,524Buy2.49% (34.4%)3.74% (24.65%)4.34% (18.52%)
    Non-Cluster–68,429Buy1.75% (23.09%)1.62% (10.12%)2.29% (9.47%)

    Note: The table presents both the cumulative returns and their annualized values for comparison.

    Time-series Changes in Average Return

    Conclusion

    • Cluster Trading’s Advantage:
      • Insider transactions that occur in clusters (with 4 or more insiders trading in the same direction) significantly outperform non-cluster trades in terms of return.
      • Cluster trading tends to provide more consistent and stable returns, especially when compared to non-cluster trades.
      • Optimal Holding Period: The ideal holding period for cluster trades is 20 trading days, beyond which the value of the insider information tends to decrease.
    • Insights for Investors:
      • Cluster trades offer a strong signal for investors looking for stable returns and insider-driven insights into stock price movements.
    • Data Availability:
      • Detailed cluster trading data is provided by Weikher’s Insider Trading Database, allowing investors to access valuable insights on insider trading patterns and trends.