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

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Envirosuite

Envirosuite Insider Transactions Over The Last Year

The insider Alexander Waislitz made the biggest insider purchase in the last 12 months. That single transaction was for AU$174k worth of shares at a price of AU$0.064 each. That means that even when the share price was higher than AU$0.057 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Envirosuite insiders were buying shares, but not selling. 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!

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

Insiders At Envirosuite Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Envirosuite. Non-Executive Chairman Colby Manwaring shelled out AU$48k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Does Envirosuite 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 10% of Envirosuite shares, worth about AU$8.2m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We do generally prefer see higher levels of insider ownership.

So What Do The Envirosuite Insider Transactions Indicate?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Envirosuite insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Envirosuite. Case in point: We've spotted 3 warning signs for Envirosuite you should be aware of.

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.