Every field in a PennySignal alert explained simply — how the confidence tier works, what each indicator means, plus the seasonal calendar of the best months to catch a cluster.
A single insider buying alone never triggers an alert — the pipeline requires at least two independent buyers before anything is sent. The tier is shown for context on every alert; it doesn't gate whether you receive it.
Blackout dates vary by company, and small caps in particular can be less consistent about publishing them than large-caps. PennySignal monitors in real time and adapts to actual SEC filing flow rather than assuming any fixed calendar.
How many different company insiders (executives, directors, or other Section 16 filers) bought shares within the same short detection window. This single number drives the confidence tier above.
3 buyers → STRONG BUY tierThe combined dollar value of every qualifying purchase in the cluster. A larger total, especially relative to the company's size, suggests higher conviction from the people buying.
$187K combined across 3 insidersThe job titles of the insiders involved (CEO, CFO, Director, 10% owner, etc.), pulled directly from their SEC filing. A CEO and CFO buying together carries different weight than two outside directors.
How recently the most recent qualifying purchase in the cluster happened. A tighter, more recent window is a fresher — and generally stronger — signal than one stitched together from purchases weeks apart.
RSI measures how fast and in which direction a stock's price has recently moved. It ranges from 0 to 100.
An RSI below 30 means the stock has been sold off aggressively — it's considered "oversold" and could bounce. An RSI above 70 means it has risen a lot — it's "overbought" and could correct. Penny stocks routinely swing to more extreme RSI values than large-caps; treat it as one data point, not a trigger on its own.
RSI at 34.2 → oversold zone, potential bounceThe 200-day moving average is simply the average closing price over the last 200 trading days. It smooths out day-to-day noise to reveal the underlying trend.
When the current price sits below the 200-day average, the stock has pulled back from its longer trend — often read as a potential entry point, especially when insiders are buying at the same time.
Price -8.3% vs SMA 200d → potential bottomCompares trading volume over the last 5 days to the 30-day average. A ratio of 1.0× is normal activity.
A ratio above 1.5× signals unusual interest in the stock — often tied to news, accumulation, or something building. Illiquid penny names can spike this ratio on very little absolute volume, so also check the actual share count before reading too much into it.
Volume 1.8× → 80% above normal activityHow much investors are paying for each dollar of the company's profit. A P/E of 18 means you're paying $18 for every $1 of annual earnings.
Shows as N/A for unprofitable companies — very common among penny stocks, especially in biotech and early-stage names with no earnings yet. That's a structural gap, not a red flag by itself.
P/E of 18.2× → moderate valuation, if profitable at allThe real cash a company generates after paying all its operating and investment expenses — one of the most reliable signs of financial health, and one that's hard to fake with accounting choices.
A positive FCF means the company funds itself. A negative FCF means it's burning cash — for a penny stock, that often means it depends on dilutive share issuance to survive, worth checking directly.
How the company's sales changed compared to the same period last year. Measures whether the business is actually expanding.
Growth above 10% is generally considered solid. Negative growth means sales are shrinking — a warning sign.
+12.4% YoY → sales grew 12.4% in a yearCompares total debt to shareholder equity — how leveraged the company is relative to what shareholders actually own.
A ratio below 0.5 means low debt, a solid balance sheet. A ratio above 2 means heavy leverage — vulnerable if rates rise or business slows, a real risk for cash-strapped penny names.
The share of every dollar of sales that becomes net profit. A 20% margin means the company keeps $20 of profit for every $100 of revenue.
Margins vary a lot by sector — treat this next to Revenue Growth and FCF rather than in isolation.
Margin of 8.6% → modest, worth checking against sector peersHow much profit the company generates for every dollar shareholders have invested. An ROE of 20% means $20 of profit for every $100 of equity.
An ROE above 15% is generally considered strong — a sign management is using shareholder capital efficiently.
The percentage of professional analysts covering the stock who recommend buying it.
A consensus above 70% Buy signals strong conviction among professionals. Not infallible — and many penny stocks have thin or no analyst coverage at all, in which case this simply shows N/A.
71% Buy → 71 of 100 covering analysts recommend buyingThe gap between the average analyst price target and the current price — the potential upside implied by their own valuation models.
Upside above 20% suggests analysts see real room to run. Take it with caution — price targets on thinly-covered penny names can be stale or based on very few analysts.
+28.4% upside → analysts see the stock 28.4% higher within 12 monthsThe percentage of shares outstanding currently "sold short" — borrowed and sold by investors betting the price will fall.
A short interest below 5% means little bearish pressure. Above 20% means a lot of professional money is betting against it — worth understanding why before buying alongside insiders.
Every indicator above is analyzed automatically for each cluster PennySignal detects. You just get the result, with the context to understand it.
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