Cluster buying

Cluster buying is when a company's insiders—like executives or board members—buy shares of their own stock around the same time, often within days or weeks of each other. You'll spot this in SEC filings (official documents companies file with regulators), and it matters because it can signal that insiders believe the stock is undervalued or headed higher. When multiple insiders buy together, it's generally seen as a stronger vote of confidence than a single purchase. For example, if a CEO, CFO, and two board members all buy shares within a two-week window, that cluster of buying might catch investors' attention as a potential positive sign—though it's never a guarantee.