When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Granite Ridge Resources, Inc.'s (NYSE:GRNT) instance, it's good news for shareholders.

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.

Granite Ridge Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Thaddeus Darden bought US$115k worth of shares at a price of US$5.74 per share. That implies that an insider found the current price of US$6.09 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Granite Ridge Resources share holders is that insiders were buying at near the current price.

While Granite Ridge Resources insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Granite Ridge Resources is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Granite Ridge Resources Have Bought Stock Recently

Over the last quarter, Granite Ridge Resources insiders have spent a meaningful amount on shares. Overall, five insiders shelled out US$281k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Granite Ridge Resources

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. Granite Ridge Resources insiders own about US$15m worth of shares. That equates to 1.9% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Granite Ridge Resources Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Granite Ridge Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Granite Ridge Resources. Every company has risks, and we've spotted 3 warning signs for Granite Ridge Resources (of which 1 shouldn't be ignored!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.