When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Granite Ridge Resources, Inc.'s (NYSE:GRNT) instance, it's good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Granite Ridge Resources

The Last 12 Months Of Insider Transactions At Granite Ridge Resources

Notably, that recent purchase by Matthew Miller is the biggest insider purchase of Granite Ridge Resources shares that we've seen in the last year. That means that even when the share price was higher than US$6.55 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Granite Ridge Resources insiders were buying shares, but not selling. 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!

Granite Ridge Resources 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.

Insiders At Granite Ridge Resources Have Bought Stock Recently

Over the last quarter, Granite Ridge Resources insiders have spent a meaningful amount on shares. In total, insiders bought US$451k worth of shares in that time, and we didn't record any sales whatsoever. This is a positive in our book as it implies some confidence.

Insider Ownership Of Granite Ridge Resources

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. Granite Ridge Resources insiders own about US$16m worth of shares. That equates to 1.9% of the company. 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 Does This Data Suggest About Granite Ridge Resources Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Insiders likely see value in Granite Ridge Resources 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 Granite Ridge Resources. To that end, you should learn about the 3 warning signs we've spotted with Granite Ridge Resources (including 1 which is a bit unpleasant).

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.

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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.