When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Simble Solutions Limited's (ASX:SIS) 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 Simble Solutions

The Last 12 Months Of Insider Transactions At Simble Solutions

Over the last year, we can see that the biggest insider purchase was by insider John Tarrant for AU$180k worth of shares, at about AU$0.005 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.004). 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. 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.

In the last twelve months Simble Solutions insiders were buying shares, but not selling. The average buy price was around AU$0.0039. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

Simble Solutions 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

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Simble Solutions insiders own 45% of the company, worth about AU$1.3m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Simble Solutions Tell Us?

It doesn't really mean much that no insider has traded Simble Solutions shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Judging from their transactions, and high insider ownership, Simble Solutions 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 Simble Solutions. To help with this, we've discovered 6 warning signs (4 can't be ignored!) that you ought to be aware of before buying any shares in Simble Solutions.

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.