Nyrada Inc. (ASX:NYR) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 15% resulting in a AU$2.3m addition to the company’s market value. In other words, the original AU$210.0k purchase is now worth AU$238.0k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Nyrada

The Last 12 Months Of Insider Transactions At Nyrada

The Non-Executive Chairman John Moore made the biggest insider purchase in the last 12 months. That single transaction was for AU$100k worth of shares at a price of AU$0.075 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.085. 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.

Nyrada insiders may have bought shares in the last year, but they didn't sell any. 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!

Nyrada 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.

Does Nyrada Boast High Insider Ownership?

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. Nyrada insiders own about AU$4.1m worth of shares. That equates to 23% 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.

What Might The Insider Transactions At Nyrada Tell Us?

It doesn't really mean much that no insider has traded Nyrada shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Nyrada and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Nyrada has 3 warning signs (and 1 which is concerning) we think you should know about.

But note: Nyrada may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.