Potential Schaffer Corporation Limited (ASX:SFC) shareholders may wish to note that the Non-Executive Independent Director, David Schwartz, recently bought AU$364k worth of stock, paying AU$21.41 for each share. Although the purchase only increased their holding by 2.7%, it is still a solid purchase in our view.

Check out our latest analysis for Schaffer

Schaffer Insider Transactions Over The Last Year

Notably, that recent purchase by David Schwartz is the biggest insider purchase of Schaffer shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$20.55). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. David Schwartz was the only individual insider to buy shares in the last twelve months.

David Schwartz purchased 39.72k shares over the year. The average price per share was AU$21.02. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! insider-trading-volume

Schaffer is not the only stock that insiders are buying. For those who like to find winning investments this freelist of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Schaffer

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Schaffer insiders own 38% of the company, worth about AU$106m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.



So What Do The Schaffer Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Schaffer insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Schaffer. Every company has risks, and we've spotted 2 warning signs for Schaffer 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.