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 Emyria Limited (ASX:EMD), that sends out a positive message to the company's shareholders.

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.

Check out our latest analysis for Emyria

Emyria Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Sufian Ahmad, sold AU$672k worth of shares at a price of AU$0.04 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of AU$0.032. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Sufian Ahmad.

Over the last year, we can see that insiders have bought 14.82m shares worth AU$710k. But insiders sold 16.80m shares worth AU$672k. Overall, Emyria insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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.

Insider Ownership Of Emyria

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 38% of Emyria shares, worth about AU$5.6m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Emyria Insider Transactions Indicate?

The fact that there have been no Emyria insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Emyria insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Emyria. Every company has risks, and we've spotted 5 warning signs for Emyria (of which 3 shouldn't be ignored!) you should know about.

Of course Emyria 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.