Reading SEC Filings
SEC filings contain critical information that most retail traders never read.
Essential Filing Types
10-K (Annual Report)
- Comprehensive yearly overview
- Financial statements
- Business description
- Risk factors
- Management discussion
- Filed within 60 days of fiscal year end
10-Q (Quarterly Report)
- Quarterly financial update
- Unaudited financials
- Management discussion
- Filed within 40 days of quarter end
8-K (Current Report)
- Material events
- Leadership changes
- Acquisitions
- Filed within 4 days of event
- Often market-moving
Insider Trading Filings
Form 4
- Insider buys and sells
- Filed within 2 business days
- Insiders know their company best
- Cluster buying = bullish signal
Form 13D
- Activist investor stake (5%+)
- Outlines intentions
- Can signal major changes
- Often moves stock price
Form 13F
- Institutional holdings quarterly
- See what funds are buying
- 45-day reporting delay
- Useful for idea generation
What to Look For
In 10-K/10-Q
- Revenue growth trends
- Margin expansion or contraction
- Debt levels and maturities
- Management tone changes
- New risk factors
Red Flags
- Auditor changes
- Restated financials
- Increasing accounts receivable
- Related party transactions
- Aggressive revenue recognition
Positive Signals
- Accelerating revenue growth
- Expanding margins
- Growing free cash flow
- Share buybacks
- Insider buying
Where to Find Filings
- SEC EDGAR: Free, official source
- Company investor relations page
- Financial data providers
- Insider tracking websites (OpenInsider)
Key Takeaways
- Read filings for companies you own
- Pay attention to insider activity
- Compare quarters year-over-year
- Watch for tone changes in MD&A
- Set up alerts for 8-K filings