It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Nutritional Growth Solutions Ltd.'s (ASX:NGS) case, it's fantastic news for 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.

See our latest analysis for Nutritional Growth Solutions

The Last 12 Months Of Insider Transactions At Nutritional Growth Solutions

Notably, that recent purchase by Danny Segman is the biggest insider purchase of Nutritional Growth Solutions shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.044. 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.

Nutritional Growth Solutions insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.042. 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 the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Nutritional Growth Solutions Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Nutritional Growth Solutions. insider Danny Segman spent AU$300k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Does Nutritional Growth Solutions Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Nutritional Growth Solutions insiders own about AU$1.0m worth of shares. That equates to 21% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Nutritional Growth Solutions Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Nutritional Growth Solutions shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nutritional Growth Solutions. For example, Nutritional Growth Solutions has 6 warning signs (and 5 which are significant) we think you should know about.

Of course Nutritional Growth Solutions 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.