Real Life Cluster Buying The small regional and community banks have been overlooked on Wall Street since the Great Financial Crisis in 2008. But, in the 18 years since, most of these banks have gotten their balance sheets in order and are now thriving. First Busey Corp. is a small-cap bank based in Champaign, Illinois. It focuses on central Illinois, metro St. Louis, and also has three branches in southwest Florida and one in Indianapolis. However, in March 2025, it acquired Kansas-based CrossFirst Bankshares. CrossFirst had branches in cities not served by First Busey, including Dallas/Fort Worth, Denver and Phoenix. With the merger completed, First Busey now has 80 full-service locations across 10 states. In Feb 2025, prior to the merger, two directors stepped in to buy shares. But after the acquisition, the insiders have continued to buy. Like most stocks, shares of First Busey plunged after Liberation Day and the tariff uncertainty, in March and April 2025, presented a buying opportunity. On May 23, 2025, three directors bought more shares and on June 12 and June 13, 2025, three directors stepped in to buy again. And they have continued to buy, with directors buying in July and Sep 2025 and again this year, in May 2026. Why do these insiders keep buying more shares? First Busey is still cheap and revenue is expected to rise +10.1% this year. Buy When the Insiders Buy When high level insiders buy, they are required to report the purchases to the SEC within 48 hours of the trade. The trade then becomes public information. Hedge funds and other professional investors routinely use this information to get an edge on their trades. For most of us, though, it’s not easy to get access to the insider information. While the media will tout the huge insider buys from celebrity CEOs like Reed Hastings' Jan 2022 $20 million Netflix share purchase, you'll almost never hear about the non-celebrity CEOs, or other top ranked officers when they buy their stocks. Was anyone talking about all the buying at First Busey? The challenge is getting easy and reliable access to all the insider trades and then figuring out which ones to buy. Where to Find the Cluster Buys Anyone can go on the SEC website and get the insider trading information, but it's time consuming to search by individual companies. Some investment firms collect the insider buying data and can provide it to you as a daily list. Have you ever seen one of those lists? The sheer number of companies can be overwhelming. And those lists don't usually separate out the cluster buys, which sometimes take place on different days in the same week. For example, if you're getting daily insider updates, you may not realize that the CEO bought on Monday, but three directors bought on Tuesday. You may pass by those 'hidden' cluster buys without even realizing it. Even if you got a list of the cluster buyers, how would you narrow it down to the stocks that are truly worth buying? If I'm going to buy when the insiders are buying, I want to buy only their top picks. Today's Hottest Insider Buys Zacks' research team has developed a unique strategy to identify only those top picks insiders are scooping up. We monitor selected insider buying activity at companies with strong earnings and valuations. Then we analyze:
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Who's buying? How much money are they putting in? |
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When, if ever, have they bought shares in the past? |
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Do they receive shares as part of their compensation, but still want more? |
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Are we seeing "Cluster Buys"? |
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Tracey Ryniec
Insider Stocks Strategist
Tracey Ryniec, Zacks' insider and value strategist, is Editor in Charge of Insider Trader. |