💡 IBM’s $300K Insider Buy: Is It an AI Signal?

Discover how one prompt revealed IBM’s rare insider buy - and how to find other AI stock signals before they go mainstream.

🌟 Editor's Note

This week, we’re digging into hidden AI stocks with real insider buying - a powerful signal for future performance. You’ll see the exact prompt we used to uncover one standout AI stock, tools to verify insider trades, and a smart challenge to sharpen your edge.

🔍 Spotlight: IBM’s Insider Bet on AI

🟢 IBM (Ticker: IBM)

• On February 28, 2025, director David Farr bought 1,200 shares at $249, totaling nearly $300,000.

• This was IBM’s first insider purchase in 2025, following strong Q1 momentum and continued growth in their AI division (including watsonx deployments and hybrid cloud AI services).

• Farr has been a board member since 2012, making this an unusually strong signal.

✍️ Prompt That Uncovered It

Paste this prompt into ChatGPT, Finchat, or another AI assistant:

"List U.S. AI-related stocks with insider director purchases in the past 90 days. Include ticker, insider role, number of shares purchased, price, and date."

This surfaced IBM as a match - and filtering out non-AI sectors or option-based trades helped zero in on high-confidence picks.

✅ How to Verify Prompt Results

Use this 3-step process:

1. Confirm the Insider Trade

• 🔗 MarketBeat Insider Trades

• 🔗 Finviz Insider Activity
  Search by ticker to find recent Form 4 filings and insider purchases. Focus on open-market buys, not option exercises or auto-scheduled sales.

2. Confirm AI Relevance

• Visit Yahoo Finance or IBM’s Investor Relations page

• Look for AI-related product lines, partnerships (e.g., SAP, Salesforce), or segment revenue

3. Assess Trade Strength

• ✔️ Trade size over $50K

• ✔️ Director (not short-term exec)

• 🚫 Skip recurring or automatic trades

⚙️ Tool of the Week: Finviz Insider + Finchat Combo

Here’s a powerful research workflow:

1. Use Finviz Insider to screen for recent insider trades.
   Sort by “Buy” transactions, filter by sector (e.g., Technology), or search by ticker.

2. Use Finchat.io to ask follow-up questions like:
   “What AI products or services does this company offer?”
   “How often has this insider bought in the past 12 months?”

This combo gives you fast access to insider activity and AI-powered context to help you decide if the signal is worth acting on.

This lets you filter not only for who’s buying, but why it may matter.

🧩 Reader Prompt Challenge

Each week we challenge you to try a new filter-driven AI prompt.

🧠 This Week’s Challenge:

Try it in your favorite AI tool.
🗳️ Send us your best result for a chance to be featured in the next issue!

📘 Recommended Read

The Little Book of Insider Trading by John J. Jakubek
This book breaks down how to read SEC Form 4 filings, detect signal vs. noise, and use insider trades as part of a momentum strategy.

🔭 Coming Next Week:

“3 AI Stocks Getting Quiet Institutional Attention - and the Prompt That Spotted Them”

Until then, prompt smart and trade sharper.

Vaulting Your Wealth Forward,
– T. D. Thompson

AI Investing Vault

The content above is for educational and informational purposes only and does not constitute financial advice or a solicitation to buy or sell any financial instruments. Trading and investing involve significant risk of loss, and past performance is not indicative of future results. Always consult with a licensed financial advisor or conduct your own research before making any investment decisions. Use of AI tools and strategies mentioned above is at your own discretion and risk. AI Investing Vault may receive compensation if you purchase tools or services mentioned in this email, at no additional cost to you.