Those following along with Macro Metals Limited (ASX:M4M) will no doubt be intrigued by the recent purchase of shares by Shawn Tilley, Director of the company, who spent a stonking AU$1.0m on stock at an average price of AU$0.01. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 50%.

Check out our latest analysis for Macro Metals

The Last 12 Months Of Insider Transactions At Macro Metals

Notably, that recent purchase by Director Shawn Tilley was not the only time they bought Macro Metals shares this year. They previously made an even bigger purchase of AU$1.0m worth of shares at a price of AU$0.01 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.016), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Macro Metals insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.0052. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

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).

Insider Ownership Of Macro Metals

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. It appears that Macro Metals insiders own 35% of the company, worth about AU$21m. 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 Macro Metals Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Macro Metals 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 Macro Metals. When we did our research, we found 5 warning signs for Macro Metals (4 make us uncomfortable!) that we believe deserve your full attention.

But note: Macro Metals 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.