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 Dubber Corporation Limited (ASX:DUB), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Dubber

Dubber Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Head of Finance Peter Pawlowitsch bought AU$585k worth of shares at a price of AU$0.015 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.024. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Dubber insiders bought shares during the last year, they didn't sell. Their average price was about AU$0.022. 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Dubber 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.

Dubber Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Dubber. Not only was there no selling that we can see, but they collectively bought AU$690k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company 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. Our data indicates that Dubber insiders own about AU$3.9m worth of shares (which is 7.8% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Dubber Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Dubber insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Dubber (3 don't sit too well with us!) and we strongly recommend you look at these before investing.

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.