Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Gateway Mining Limited (ASX:GML), that sends out a positive message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Gateway Mining

Gateway Mining Insider Transactions Over The Last Year

The Non-Executive Director Trent Franklin made the biggest insider purchase in the last 12 months. That single transaction was for AU$120k worth of shares at a price of AU$0.02 each. That implies that an insider found the current price of AU$0.021 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Gateway Mining share holders is that insiders were buying at near the current price.

Gateway Mining insiders may have bought shares in the last year, but they didn't sell any. 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!

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

Gateway Mining Insiders Bought Stock Recently

Over the last quarter, Gateway Mining insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought AU$192k worth of shares. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Gateway Mining

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. Gateway Mining insiders own about AU$1.7m worth of shares. That equates to 20% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Gateway Mining Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Gateway Mining insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Gateway Mining has 6 warning signs (and 4 which are concerning) we think you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.