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 American Coastal Insurance Corporation (NASDAQ:ACIC), 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.

Check out our latest analysis for American Coastal Insurance

American Coastal Insurance Insider Transactions Over The Last Year

The Independent Director Michael Hogan made the biggest insider purchase in the last 12 months. That single transaction was for US$91k worth of shares at a price of US$11.37 each. That means that even when the share price was higher than US$10.44 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months insiders purchased 16.57k shares for US$168k. On the other hand they divested 5.25k shares, for US$59k. Overall, American Coastal Insurance insiders were net buyers during the last year. Their average price was about US$10.11. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

American Coastal Insurance Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at American Coastal Insurance. Independent Director Michael Hogan bought US$91k worth of shares in that time. But President Bennett Martz sold US$59k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Insider Ownership Of American Coastal Insurance

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 American Coastal Insurance insiders own 49% of the company, worth about US$248m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About American Coastal Insurance Insiders?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. On a brighter note, the transactions over the last year are encouraging. It would be great to see more insider buying, but overall it seems like American Coastal Insurance insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing American Coastal Insurance. Every company has risks, and we've spotted 1 warning sign for American Coastal Insurance you should know about.

But note: American Coastal Insurance 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.