Insider Signal Screener — Insider Buying + P/E + PEG
A three-signal convergence screener that combines insider buying conviction (SEC Form 4) with below-average P/E and PEG ratios into a single buy-opportunity score for any stock.
How the Convergence Screener Works
The Insider Signal screener looks for stocks where three independent signals align simultaneously:
- Insider buying (SEC Form 4): Corporate directors, officers, and major shareholders are purchasing shares on the open market — not exercising options, but buying with their own cash. These disclosures are mandatory and public.
- P/E below 5-year average: The stock's current price-to-earnings ratio is trading below its own historical average, suggesting the market may be underpricing the company relative to its earnings power.
- PEG below historical norm: The growth-adjusted valuation (PEG ratio) is also compressed, indicating the growth rate isn't fully priced in.
Why Insider Buying Matters
Under SEC regulations, corporate insiders must file Form 4 disclosures within two business days of any open-market stock transaction. Because insiders have the deepest knowledge of their company's financial health, prospects, and competitive position, voluntary open-market purchases are widely regarded as a high-conviction bullish signal. Academic research has consistently found that clusters of insider buying — especially across multiple insiders at the same company — tend to precede above-average stock returns.
When insider buying coincides with an objectively low P/E and PEG, the three-signal convergence strengthens the case for further research. Use this screener as a starting point for due diligence, not as a standalone trade recommendation.
Insider data sourced from SEC EDGAR Form 4 filings; valuation data from Yahoo Finance. Enter a ticker above to run the screener.
Related tools: P/E Ratio History Chart · PEG Ratio Screener · All Stock Analysis Tools
Frequently Asked Questions
- What is the Insider Signal convergence screener?
- The Insider Signal screener combines three independent buy signals into a single opportunity score for any stock: (1) recent insider buying reported via SEC Form 4 filings, (2) the stock’s current P/E ratio trading below its own 5-year historical average, and (3) the PEG ratio trading below its historical norm. When all three signals converge, it suggests a stock may be both undervalued and supported by insider conviction.
- Why is insider buying a meaningful signal?
- Corporate insiders — directors, officers, and 10%+ shareholders — must disclose open-market stock purchases within two business days on SEC Form 4. Because insiders have the deepest knowledge of their company’s prospects, voluntary open-market buying (not option exercises) is widely considered a bullish signal. Academic research has found that insider buying, particularly by multiple insiders at the same time, tends to precede above-average stock returns.
- How is the convergence score calculated?
- The score weights three signals: recent insider buying volume and number of unique buyers (from SEC EDGAR Form 4 data), the current P/E ratio compared to the stock’s own 5-year trailing average, and the current PEG ratio compared to its historical norm. Each signal contributes independently so a stock can score on one, two, or all three dimensions.
- Where does the insider buying data come from?
- Insider transaction data is sourced directly from SEC EDGAR Form 4 filings, which are public disclosures required by Section 16 of the Securities Exchange Act. Blue Alpha Research ingests these filings in real time, typically within minutes of SEC publication.