Insiders who purchased US$1.3m worth of Cooper-Standard Holdings Inc. (NYSE:CPS) shares over the past year recouped some of their losses after price gained 98% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$472k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Cooper-Standard Holdings

The Last 12 Months Of Insider Transactions At Cooper-Standard Holdings

In the last twelve months, the biggest single purchase by an insider was when Independent Director Stephen Van Oss bought US$485k worth of shares at a price of US$13.03 per share. That means that even when the share price was higher than US$8.53 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Cooper-Standard Holdings insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cooper-Standard Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insiders At Cooper-Standard Holdings Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Cooper-Standard Holdings. Senior VP Patrick Clark purchased US$16k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Cooper-Standard Holdings insiders have about 2.7% of the stock, worth approximately US$3.9m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Cooper-Standard Holdings Insiders?

Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cooper-Standard Holdings stock. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Cooper-Standard Holdings you should know about.

Of course Cooper-Standard Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.