CommScope Holding Company, Inc. (NASDAQ:COMM) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 10%, resulting in a US$117m rise in the company's market capitalisation, translating to a gain of 280% on their initial investment. As a result, the stock they originally bought for US$268.4k is now worth US$1.02m.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

CommScope Holding Company Insider Transactions Over The Last Year

The Independent Director L. Krause made the biggest insider purchase in the last 12 months. That single transaction was for US$238k worth of shares at a price of US$1.60 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.80. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

CommScope Holding Company insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of CommScope Holding Company

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.0% of CommScope Holding Company shares, worth about US$25m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About CommScope Holding Company Insiders?

It doesn't really mean much that no insider has traded CommScope Holding Company shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in CommScope Holding Company and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CommScope Holding Company. Case in point: We've spotted 3 warning signs for CommScope Holding Company you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.