Do Insiders Cluster Trades With Colleagues? Evidence From Daily Insider Trading

Alldredge and Blank study whether corporate insiders time trades near colleagues at the same firm. Using daily transaction data, they treat similarity in timing as evidence about internal information flows rather than merely a portfolio-screen construction. Clustering is strongest among insiders who work closely together and in settings with lower investor attention, greater uncertainty, and greater information asymmetry.

The paper reports that clustered purchases in its sample are followed by abnormal returns exceeding two percent during the next month. That historical estimate is sample- and method-specific. It is not displayed as an outcome attached to current events on Insider Atlas. The contribution most directly implemented here is behavioral: agreement across distinct insiders is a real pattern worth identifying, while a single insider splitting one order across days is not the same event. The site therefore deduplicates by insider identity and requires at least three distinct insiders within an ISO week.

The implementation is still an approximation. Alldredge and Blank study colleague proximity and information environments that the Form 4 pipeline does not observe. Insider Atlas has role titles but no organizational-distance graph, attention measure, or firm uncertainty model. Its cluster page describes a concentration event and links to this paper; it does not assert information sharing. Sales clusters also retain the dead-cat-bounce caveat because the broader literature finds many non-informational reasons for sales even when timing overlaps.

Abstract excerpt

“We explore similarities in insider trading as a proxy for information flows.”

Connections in Insider Atlas

The BGDE and NTSK purchase clusters show distinct-member counting. The NTSK company page exposes roles but not colleague proximity.

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