From what we can see, insiders were net buyers in Nine Energy Service, Inc.'s (NYSE:NINE ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Nine Energy Service

The Last 12 Months Of Insider Transactions At Nine Energy Service

In the last twelve months, the biggest single purchase by an insider was when insider William Monroe bought US$1.9m worth of shares at a price of US$1.61 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.22). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. 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 William Monroe.

William Monroe bought 2.63m shares over the last 12 months at an average price of US$1.43. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Nine Energy Service is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insiders At Nine Energy Service Have Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Nine Energy Service. We can see that insider William Monroe paid US$1.2m for shares in the company. But we did see insider selling worth US$349k. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.

Insider Ownership Of Nine Energy Service

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 28% of Nine Energy Service shares, worth about US$14m. 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 Nine Energy Service Tell Us?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Nine Energy Service insiders are well aligned, and that they may think the share price is too low. 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. Be aware that Nine Energy Service is showing 5 warning signs in our investment analysis, and 1 of those is potentially serious...

Of course Nine Energy Service 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.