Those following along with Gates Industrial Corporation plc (NYSE:GTES) will no doubt be intrigued by the recent purchase of shares by Fredrik Eliasson, Independent Director of the company, who spent a stonking US$1.2m on stock at an average price of US$19.56. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 49%.

The Last 12 Months Of Insider Transactions At Gates Industrial

Notably, that recent purchase by Fredrik Eliasson is the biggest insider purchase of Gates Industrial shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$19.67. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Gates Industrial insiders decided to buy shares at close to current prices.

While Gates Industrial 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!

Gates Industrial is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Gates Industrial

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. It appears that Gates Industrial insiders own 1.6% of the company, worth about US$80m. 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 Gates Industrial Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Gates Industrial insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Gates Industrial. At Simply Wall St, we found 1 warning sign for Gates Industrial that deserve your attention before buying any shares.

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.