From what we can see, insiders were net buyers in KVH Industries, Inc.'s (NASDAQ:KVHI ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

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 KVH Industries

KVH Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Bradley Radoff for US$1.3m worth of shares, at about US$4.50 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$5.84. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Bradley Radoff purchased 339.67k shares over the year. The average price per share was US$4.44. 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.

KVH Industries Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at KVH Industries. insider Bradley Radoff spent US$240k on stock. On the other hand, President Brent Bruun netted US$3.6k by selling. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. KVH Industries insiders own about US$24m worth of shares. That equates to 21% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The KVH Industries Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of KVH Industries we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for KVH Industries and we suggest you have a look.

Of course KVH Industries 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.