Over the last year, a good number of insiders have significantly increased their holdings in IVE Group Limited (ASX:IGL). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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.

See our latest analysis for IVE Group

The Last 12 Months Of Insider Transactions At IVE Group

Over the last year, we can see that the biggest insider purchase was by insider Ryan Young for AU$4.0m worth of shares, at about AU$2.24 per share. That means that even when the share price was higher than AU$2.18 (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. In our view, the price an insider pays for shares is very important. 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.

Over the last year, we can see that insiders have bought 1.87m shares worth AU$4.2m. On the other hand they divested 391.65k shares, for AU$776k. In the last twelve months there was more buying than selling by IVE Group insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

IVE Group Insiders Bought Stock Recently

Over the last quarter, IVE Group insiders have spent a meaningful amount on shares. In total, insiders bought AU$4.1m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Insider Ownership Of IVE Group

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. IVE Group insiders own about AU$54m worth of shares. That equates to 16% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At IVE Group Tell Us?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in IVE Group shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IVE Group. Every company has risks, and we've spotted 2 warning signs for IVE Group you should know about.

Of course IVE Group 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.