Enter a ticker symbol (e.g., IBM) and a timeframe (in days) to retrieve insider trading data and insider sentiment. Only transactions whose share price is within ±50% of the last close are considered.
MSPR (Monthly Share Purchase Ratio):
MSPR is provided by Finnhub and ranges from -100 (most negative sentiment) to 100 (most positive sentiment).
To normalize this value to a 0–100 scale, we use:
normalizedValue = (value + 100) / 2
For example, an MSPR of 50 becomes 75, while an MSPR of -50 becomes 25.
Final MSPR Score (25% weight): We take the most recent MSPR value (finalMspr) from the data and normalize it.
Original Insider Transaction Score (50% weight):
This score is calculated as the percentage difference between total buys and sells:
transactionScore = ((totalBuys - totalSells) / (totalBuys + totalSells)) * 100
We then normalize it using the same formula.
Trend Component (25% weight):
This factor combines two elements:
1. Regression Slope: A measure of the trend of MSPR values over time. We normalize the slope.
2. Average MSPR: The average MSPR over the period, normalized.
The trend component is computed as the average of these two normalized values.
Final Insider Score:
The overall score is a weighted sum:
- 25% Final MSPR Score
- 50% Original Insider Transaction Score
- 25% Trend Component
Mathematically:
finalScore = 0.5 * normalizedFinalMspr + 0.25 * normalizedTransactionScore + 0.25 * ((normalizedSlope + normalizedAvgMspr) / 2)