In the last year, multiple insiders have substantially increased their holdings of Seanergy Maritime Holdings Corp. (NASDAQ:SHIP) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

View our latest analysis for Seanergy Maritime Holdings

Seanergy Maritime Holdings Insider Transactions Over The Last Year

The insider George Economou made the biggest insider purchase in the last 12 months. That single transaction was for US$7.1m worth of shares at a price of US$6.31 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$9.70. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Seanergy Maritime Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about US$7.05. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Seanergy Maritime Holdings 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 Of Seanergy Maritime Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of Seanergy Maritime Holdings shares, worth about US$54m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Seanergy Maritime Holdings Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Seanergy Maritime Holdings shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Seanergy Maritime Holdings and we see no evidence to suggest they are worried about the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. While conducting our analysis, we found that Seanergy Maritime Holdings has 2 warning signs and it would be unwise to ignore these.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.