SEC Form 4 Explained: Following the Smart Money

SEC Form 4 is one of the most valuable sources of trading intelligence for informed investors. Here's everything you need to know about this powerful data source.

What is Form 4?

The SEC requires corporate insiders (officers, directors, and 10%+ shareholders) to report their transactions within two business days. This creates a near real-time feed of what company leadership is doing with their own money.

Why Insider Buying Matters

"Insiders might sell for many reasons, but they only buy for one: they think the price will rise." This famous quote from Peter Lynch captures why we focus heavily on insider purchases.

Key Patterns to Watch

• Cluster Buying: Multiple insiders purchasing within a short timeframe
• CEO/CFO Purchases: Top executives have the most complete picture of company health
• Open Market Purchases: More significant than option exercises or awards
• Buying During Downturns: Indicates strong conviction

How SigHunt Helps

We parse every Form 4 filing automatically, filter out noise (routine option exercises, scheduled sales), and surface the most meaningful transactions. Our scoring system weighs multiple factors to help you focus on what matters most.