Insiders who bought Ouster, Inc. (NYSE:OUST) stock lover the last 12 months are probably not as affected by last week's 11% loss. After accounting for the recent loss, the US$1.01m worth of shares they purchased is now worth US$1.50m, suggesting a good return on their investment.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Ouster Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Virginia Boulet for US$240k worth of shares, at about US$6.20 per share. We do like to see buying, but this purchase was made at well below the current price of US$10.78. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 139.60k shares worth US$1.0m. On the other hand they divested 44.17k shares, for US$296k. Overall, Ouster insiders were net buyers during the last year. Their average price was about US$7.26. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

Ouster 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.

Ouster Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Ouster. In total, three insiders bought US$418k worth of shares in that time. But insiders only sold shares worth US$131k. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.

Does Ouster Boast High Insider Ownership?

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. Insiders own 6.1% of Ouster shares, worth about US$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Ouster Tell Us?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Ouster 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 Ouster. At Simply Wall St, we've found that Ouster has 3 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Ouster may not be the best stock to buy. So you may wish to see this free collection of high quality 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.