It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Solaris Energy Infrastructure, Inc.'s (NYSE:SEI) case, it's fantastic news for shareholders.

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

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The Last 12 Months Of Insider Transactions At Solaris Energy Infrastructure

The COO, CEO William Zartler made the biggest insider purchase in the last 12 months. That single transaction was for US$473k worth of shares at a price of US$24.07 each. That means that even when the share price was higher than US$22.89 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 32.80k shares worth US$808k. But they sold 28.51k shares for US$472k. Overall, Solaris Energy Infrastructure insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Solaris Energy Infrastructure

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).

Solaris Energy Infrastructure Insiders Bought Stock Recently

It's good to see that Solaris Energy Infrastructure insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$808k for shares in the company -- and none sold. This makes one think the business has some good points.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.8% of Solaris Energy Infrastructure shares, worth about US$53m. 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 Do The Solaris Energy Infrastructure Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Insiders likely see value in Solaris Energy Infrastructure 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 Solaris Energy Infrastructure. To that end, you should learn about the 5 warning signs we've spotted with Solaris Energy Infrastructure (including 4 which are significant) .

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.