10b5-1 plan purchase dilutes the insider bullish signal Insider trade execution path weak bullish signal adoption May 12, 2026 execution Aug 12, 2026 3-month lock — plan schedule Rule 10b5-1 plan — pre-arranged schedule LOCKED Adopt plan no MNPI held Schedule locked price · shares · dates Broker executes automatic, no control Weak signal $15.80 not a view cannot time to current MNPI Insider's real-time information MNPI track Discretionary open-market — decision = execution FUSED Insider decides in possession of MNPI Open-market buy timed to the view Strong signal cluster buying → catalyst ① Adopt plan ② Schedule locked ③ Broker executes ⑤ Weak signal Insider decides Buy at one instant Strong signal ⑥ stronger re-rating catalyst: discretionary cluster buying by multiple insiders
10b5-1 plan purchase
Weak bullish signal
Trade is locked to a schedule set May 12, 2026 — three months before the August 12 execution. The insider cannot route current information into the trade.
Discretionary open-market
Strong bullish signal
Decision and execution happen at the same instant, so the trade reflects the insider's real-time view. Cluster buying by multiple insiders outside any plan is the stronger re-rating catalyst.