Investors who take an interest in Tasmea Limited (ASX:TEA) should definitely note that the MD & Executive Director, Stephen Young, recently paid AU$2.84 per share to buy AU$250k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

View our latest analysis for Tasmea

Tasmea Insider Transactions Over The Last Year

In fact, the recent purchase by MD & Executive Director Stephen Young was not their only acquisition of Tasmea shares this year. Earlier in the year, they paid AU$1.62 per share in a AU$286k purchase. We do like to see buying, but this purchase was made at well below the current price of AU$2.85. 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.

Stephen Young purchased 310.60k shares over the year. The average price per share was AU$1.96. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Tasmea 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.

Insider Ownership Of Tasmea

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. It's great to see that Tasmea insiders own 64% of the company, worth about AU$420m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Tasmea Tell Us?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Tasmea. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tasmea. Every company has risks, and we've spotted 2 warning signs for Tasmea you should know about.

But note: Tasmea 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.