Investors who take an interest in Damstra Holdings Limited (ASX:DTC) should definitely note that the Executive Chairman, Johannes Risseeuw, recently paid AU$0.34 per share to buy AU$150k worth of the stock. Although the purchase only increased their holding by 2.3%, it is still a solid purchase in our view.

View our latest analysis for Damstra Holdings

Damstra Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Johannes Risseeuw is the biggest insider purchase of Damstra Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.34. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. In this case we're pleased to report that the insider purchases were made at close to current prices.

Damstra Holdings insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.40. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction! insider-trading-volume

Damstra Holdings is not the only stock insiders are buying. So take a peek at this freelist of growing companies with insider buying.

Does Damstra Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Damstra Holdings insiders own about AU$19m worth of shares. That equates to 24% 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.



So What Do The Damstra Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Damstra Holdings insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Damstra Holdings. Every company has risks, and we've spotted 3 warning signs for Damstra Holdings you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this freelist of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.