On the night of 01/31/24, the stock KALA was picked up by the Insider Trading Alerts screener system, and sent out in an email:
This system parses the thousands of trades a day that are filed with the SEC, and on 12/31 it only found these 6 to be significant in respect to the next day’s stock price. The filing concerning KALA can be found here:
We can see that some corporate insiders, in this case, a company that already has holdings in KALA and an interest bought over 2 million dollars worth of stock, at a 6.44/share cost basis. They are now up about 20% on that initial buy in, a 400 thousand dollar return in just a few days. This stock was purchased in a recent “private placement” agreement that raises funds for the company.
Now the market sees this filing, and sees it as good news for the stock since insiders with close knowledge are willing to continually buy in to KALA. But since this is niche it isn’t reacted to as quickly, and that’s where this email came in. I personally made about 20% off of the spike in the stock the trading day after the filing came out.
You won’t find some of this information on major news sites, so that’s the kind of information we are aiming to democratize here.
Here at Insider Trading Alerts, we trade like the insiders. We buy when they buy, and use our automated screener and algorithm to identify stocks with significant trades, and get in on those stocks as soon as we can.