AI-Powered Risk & Opportunity Scoring
Every SEC filing is automatically scored for risk and opportunity. AI agents identify red flags, bullish signals, and everything in between — so you can focus on what matters.
Try It FreeHow Risk Scoring Works
When a company files a document with the SEC, NexusAlert's AI agents read the full filing and evaluate it across multiple dimensions. The AI doesn't just look for keywords — it understands context, identifies material changes from prior filings, and assesses the overall sentiment and significance of each disclosure.
Each filing receives a sentiment classification (bullish, bearish, or neutral) and is tagged with specific risk flags or opportunity indicators. These flags are derived from the actual content of the filing, not generic heuristics. A going concern warning in a 10-K gets flagged very differently from a mention of "risks" in a boilerplate risk factors section.
Risk Flags
NexusAlert identifies over 40 distinct risk flags across SEC filings. These represent material concerns that could negatively impact a company's stock price or financial health:
- Financial distress signals: Going concern warnings, debt covenant violations, liquidity concerns, credit rating downgrades.
- Corporate governance red flags: Auditor changes, restatements, material weaknesses in internal controls, unusual related-party transactions.
- Insider selling patterns: Large insider sales, accelerated option exercises, cluster selling by multiple executives.
- Operational risks: Major customer losses, supply chain disruptions, regulatory investigations, pending litigation with material exposure.
- Dilution risks: Shelf registrations, secondary offerings, warrant exercises, convertible debt conversions.
Opportunity Indicators
The same AI analysis identifies over 40 opportunity indicators — signals that suggest positive developments or undervalued situations:
- Insider buying: Open-market purchases by officers and directors, especially cluster buying by multiple insiders.
- Shareholder-friendly actions: Stock buyback authorizations, dividend increases, special dividends.
- Growth catalysts: Major contract wins, strategic acquisitions, new product launches, partnership agreements.
- Institutional interest: New activist positions via SC 13D filings, significant increases in institutional ownership.
- Financial improvement: Debt reduction, margin expansion, revenue acceleration, raised guidance.
Severity Levels
Not all risks and opportunities are equal. NexusAlert assigns severity levels to help you prioritize your attention. A going concern warning on a 10-K is a critical risk. A minor insider sale as part of a pre-planned 10b5-1 trading plan is a low-severity event. The severity scoring helps you quickly identify which filings demand immediate review and which can be reviewed later.
Daily Digest Integration
Professional subscribers receive daily email digests that highlight the highest-severity risk and opportunity flags from the previous day's filings. This means you start each trading day knowing which filings deserve your attention, without having to manually review dozens of documents.