Those following along with The Beachbody Company, Inc. (NYSE:BODY) will no doubt be intrigued by the recent purchase of shares by Carl Daikeler, Co-Founder of the company, who spent a stonking US$1.9m on stock at an average price of US$1.92. That purchase boosted their holding by 74%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Beachbody Company

Beachbody Company Insider Transactions Over The Last Year

In fact, the recent purchase by Carl Daikeler was the biggest purchase of Beachbody Company shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$2.16 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Beachbody Company share holders is that insiders were buying at near the current price.

In the last twelve months Beachbody Company insiders were buying shares, but not selling. The average buy price was around US$1.50. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Beachbody Company is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Beachbody Company insiders own 52% of the company, currently worth about US$348m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Beachbody Company Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Beachbody Company. Nice! 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. In terms of investment risks, we've identified 3 warning signs with Beachbody Company and understanding them should be part of your investment process.

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, 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.