When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Alma Metals Limited's (ASX:ALM) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Alma Metals

The Last 12 Months Of Insider Transactions At Alma Metals

The Executive Chairman Alasdair Cooke made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.01 each. That means that an insider was happy to buy shares at around the current price of AU$0.01. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Alma Metals insiders decided to buy shares at close to current prices.

While Alma Metals insiders bought shares during the last year, they didn't sell. 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!

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

Alma Metals Insiders Bought Stock Recently

It's good to see that Alma Metals insiders have made notable investments in the company's shares. Overall, three insiders shelled out AU$160k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership Of Alma Metals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Alma Metals insiders own about AU$1.1m worth of shares (which is 12% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Alma Metals Insiders?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Alma Metals insiders are expecting a bright future. 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. Be aware that Alma Metals is showing 6 warning signs in our investment analysis, and 4 of those can't be ignored...

But note: Alma Metals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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