Looking at Advanced Flower Capital Inc.'s (NASDAQ:AFCG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Advanced Flower Capital

Advanced Flower Capital Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Executive Chairman Leonard Tannenbaum for US$708k worth of shares, at about US$12.09 per share. That means that even when the share price was higher than US$9.73 (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 when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Leonard Tannenbaum was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Advanced Flower Capital 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Advanced Flower Capital insiders own about US$39m worth of shares. That equates to 18% 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.

What Might The Insider Transactions At Advanced Flower Capital Tell Us?

It doesn't really mean much that no insider has traded Advanced Flower Capital shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Advanced Flower Capital and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Advanced Flower Capital. Case in point: We've spotted 3 warning signs for Advanced Flower Capital you should be aware of, and 1 of these shouldn't be ignored.

But note: Advanced Flower Capital 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.