An InsiderAlpha-derived dollar metric: eligible Code P purchase value minus eligible Code S sale value for a ticker and time window.
Definition
Net capital flow is calculated by summing the nominal value of eligible Code P transactions and subtracting the nominal value of eligible Code S transactions within stated date boundaries. It is derived from SEC-reported transaction rows; the SEC does not publish this metric.
Net capital flow is an InsiderAlpha-derived analytical metric, not a field reported by the SEC. In this glossary it means the nominal value of eligible Code P purchases minus the nominal value of eligible Code S sales inside the selected transaction-date window. It is a transparent dollar balance, not the site's broader insider-sentiment score.
Related Form 4 codes
Methodology and Formula
For a ticker and time window, calculate each eligible row's nominal value as Shares × Price (or use the validated calculated value), sum Code P values, sum Code S values, and subtract: Net Capital Flow = Gross P Value − Gross S Value. Positive means reported eligible purchases exceeded sales; negative means sales exceeded purchases.
The metric excludes grants (A), option exercises (M), tax or exercise-price withholding (F), gifts (G), bona fide gifts or other dispositions (D), and catch-all transactions (J). Those events can change ownership but do not represent comparable purchase-and-sale flow. Codes P and S can include private transactions, so footnotes remain necessary when the analysis specifically claims exchange activity.
Real Sample Calculation
The downloadable sample contains two accession-backed TransDigm (TDG) records within a 62-day span: a January 9, 2020 Code S transaction worth $708,352.11 and a March 11, 2020 Code P transaction worth $831,198.79. Applying the stated formula to those two sample records gives $831,198.79 − $708,352.11 = +$122,846.68.
That result describes only the selected sample records and window. It is not a claim that the sample contains every TDG transaction or that all-company flow for the period was exactly the same. Reproducible analysis must state its dataset version, filters, date boundaries, and amendment policy.
How It Appears in InsiderAlpha Data
The SEC does not publish a net_capital_flow value. InsiderAlpha derives it from Ticker, Date, Type, Shares, Price, Total_Value or calculated_total_value, plus lineage fields such as accession_number and transaction_sequence. Quality and current-record fields help prevent invalid, amended, or superseded rows from entering the sum.
Window selection should use transaction date for economic timing. filing_date and accepted_at answer a different question: when the information became public. Mixing those clocks changes the result and must be disclosed.
Common Analytical Errors
Error 1: presenting net flow as an SEC metric. It is derived by InsiderAlpha from SEC-reported inputs.
Error 2: adding every acquisition and disposition. A, M, F, G, D, and J are not economically interchangeable with P and S.
Error 3: calling positive flow “management accumulation.” A large holder or director can dominate the total, and Code P can be private.
Error 4: hiding normalization inside the definition. Rank weighting and market-cap scaling can produce useful separate scores, but they are not part of this raw dollar metric.
Error 5: ignoring amendments, missing prices, or incomplete coverage. Publish eligibility rules and coverage limitations with the number.
Net Capital Flow Eligibility
| Codes | Treatment | Reason |
|---|---|---|
| P | Add nominal value | Reported open-market or private purchase; footnotes clarify venue and terms. |
| S | Subtract nominal value | Reported open-market or private sale, including planned sales unless a separate filter is disclosed. |
| A / M / F | Exclude | Compensation, derivative conversion, and withholding mechanics are not comparable cash flow. |
| G / D / J | Exclude | Gifts and other coded transfers require separate ownership analysis. |
Primary Sources & Filing References
- SEC Form 4 General Instructions
Primary source for the transaction-code inputs; the SEC does not define InsiderAlpha's derived metric.
- SEC Investor Bulletin: Forms 3, 4, and 5
Primary background on filing timing and the economic meaning of P, S, and F.
- SEC filing: TDG Code S, accession 0001209191-20-002976
Sale-side source record used in the sample calculation.
- SEC filing: TDG Code P, accession 0000919574-20-002399
Purchase-side source record used in the sample calculation.
Live Insider Data
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Why it matters for Whale Tracking
The metric summarizes reported purchase and sale dollars without mixing in compensation and transfer mechanics. It is most useful as a reproducible research input alongside insider identity, transaction context, remaining ownership, and filing footnotes—not as a standalone forecast.
Technical Nuance
This raw metric does not include executive-rank weighting or market-cap normalization. Grants, option exercises, tax withholding, gifts, and other non-comparable codes are excluded. Results also depend on transaction-date windows, price availability, amendments, deduplication, and dataset coverage.
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Real-World Example
"Two accession-backed TDG records in the downloadable sample show a $708,352.11 Code S transaction and an $831,198.79 Code P transaction within 62 days. For those two records, net capital flow is +$122,846.68."
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