Question 1

What is the Monthly Share Purchase Ratio (MSPR)?

Accepted Answer

The Monthly Share Purchase Ratio (MSPR) measures the ratio of insider buying to total insider transactions (buys + sells) over the past 30 days. An MSPR of 1.0 means insiders are exclusively buying; 0.0 means exclusively selling. High MSPR values — especially above 0.7 — combined with multiple insiders buying are historically associated with positive stock performance over the following 3-6 months.

Question 2

What types of insider transactions appear on Form 4?

Accepted Answer

SEC Form 4 must be filed within 2 business days of any transaction by a corporate insider (officers, directors, and 10%+ shareholders). Reportable transactions include: open market purchases and sales, option exercises, restricted stock vesting, stock awards, and transfers between accounts. StonkWhisper tracks open market purchases most closely — these are the highest-conviction buys because insiders are spending their own cash, not receiving stock as compensation.

Question 3

How reliable is insider buying as a stock signal?

Accepted Answer

Academic research consistently shows that insider buying — particularly open market purchases — is associated with above-market returns over 6-12 month horizons. The signal is strongest when: (1) multiple insiders buy simultaneously, (2) the purchase is significant relative to their existing holdings, and (3) buying occurs after a stock decline rather than near all-time highs. Insider selling is less informative since executives sell for many reasons unrelated to their outlook.

Question 4

Can I track insider activity for a specific stock?

Accepted Answer

Yes. Use the StonkWhisper Insider Trading Dashboard to search by ticker and see the full Form 4 history including who bought, how many shares, at what price, and the current MSPR signal. The dashboard also shows cluster buying — when 3 or more insiders buy within a 30-day window, which is a particularly strong signal.

Insider Transactions

Insider Trade Flow

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