Cluster buying

Cluster buying is when a company's insiders—executives, board members, or major shareholders—all buy shares of their own stock around the same time. 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 often seen as a stronger vote of confidence than a single purchase. For example, if a company's CEO, CFO, and two board members all buy shares within a few weeks, that's cluster buying. It's not a guarantee the stock will rise, but it shows the people closest to the business are putting their own money where their mouth is.