Insider and Congress trades: how to read them

Insider filings (Form 4)

When an officer, director, or 10% owner buys or sells company stock, they must file Form 4 with the SEC, generally within two business days. Filings show the person, role, transaction type, share count, price, and remaining holdings.

• Open-market buys are the strongest signal: insiders have many reasons to sell, but usually one reason to buy with their own cash.
• Sells are noisier — diversification, taxes, and pre-scheduled 10b5-1 plans explain most of them. Look for clusters and size relative to holdings.
• Gifts, conversions, and option exercises are administrative and should be weighed lightly (TradingGenie labels them separately).

Congressional trades (STOCK Act)

Members of Congress must disclose securities transactions over $1,000 within 45 days. Disclosures list ranges (e.g. $50,001–$100,000), not exact amounts, and often cover spouse or dependent accounts. The 45-day lag matters: by the time you see the trade, the price may already have moved.

How to weigh them together

Neither signal is a trade recommendation. Both are more meaningful when they agree with other evidence: an insider buying into a name with improving fundamentals and bullish options flow is a different picture than an isolated purchase. TradingGenie condenses insider, institutional, and congressional activity into a Smart Money Score per symbol so the weight of evidence is visible at a glance.