Insiders were net buyers of ProFrac Holding Corp.'s (NASDAQ:ACDC ) stock during the past year. That is, insiders bought more stock than they sold.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for ProFrac Holding

The Last 12 Months Of Insider Transactions At ProFrac Holding

The Executive Chairman & President Matthew Wilks made the biggest insider purchase in the last 12 months. That single transaction was for US$623k worth of shares at a price of US$7.91 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.35). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Matthew Wilks.

Matthew Wilks purchased 89.96k shares over the year. The average price per share was US$7.91. 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!

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).

Does ProFrac Holding Boast High Insider Ownership?

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. ProFrac Holding insiders own about US$35m worth of shares. That equates to 3.0% 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.

So What Does This Data Suggest About ProFrac Holding Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in ProFrac Holding shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in ProFrac Holding, you should check out this free report on analyst forecasts for the company.

Of course ProFrac Holding 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.