Insider conviction
Kereon's 0–100 measure of how meaningful this company's recent insider buying is.
Formula
Conviction = 100 × Σ weight × factor ÷ Σ weights of the factors measured
Inputs
- Open-market (22%). Share of insider acquisitions that were purchases at market.
- Breadth (18%). Distinct buyers; full marks at 4.
- Dollar value (16%). Full marks at $5 million.
- Relative to market cap (14%). Full marks at 0.1% of the company.
- Seniority (10%). The most senior buyer: chief executive 1.0, CFO 0.92, COO or president 0.85, director 0.50.
- Rarity (10%). The largest purchase against the same insider's median transaction; 3× the median scores full marks, too little history scores 0.5.
- Net of selling (10%). Open-market buying ÷ all open-market insider activity.
How to read it
Strong from 75, notable from 50, weak below. No score without at least one open-market purchase in the window.
How to use it
Separates meaningful insider buying from routine grants and token purchases.
In Kereon
Whales. Over the last 90 days, it weighs whether purchases were made on the open market, their dollar size absolutely and relative to the company, how many different insiders bought, their seniority, how unusual it is for them, and concurrent selling by others.
Also called: insider conviction.