When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Shutterstock, Inc.'s (NYSE:SSTK) 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 Shutterstock

Shutterstock Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when CEO & Director Paul Hennessy bought US$480k worth of shares at a price of US$38.59 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$32.36). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

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

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

Insider Ownership Of Shutterstock

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Shutterstock insiders own about US$361m worth of shares (which is 32% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Shutterstock Insiders?

The fact that there have been no Shutterstock insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Shutterstock insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Shutterstock. When we did our research, we found 3 warning signs for Shutterstock (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

But note: Shutterstock 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 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.