Even if it's not a huge purchase, we think it was good to see that Glen Chipman, the Executive Director of Commercial & Director of Iron Road Limited (ASX:IRD) recently shelled out AU$57k to buy stock, at AU$0.19 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 25%.

See our latest analysis for Iron Road

The Last 12 Months Of Insider Transactions At Iron Road

Notably, that recent purchase by Glen Chipman is the biggest insider purchase of Iron Road shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of AU$0.18. 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. To us, it's very important to consider the price insiders pay for 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. Glen Chipman was the only individual insider to buy shares in the last twelve months.

Glen Chipman bought 500.00k shares over the last 12 months at an average price of AU$0.22. 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

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this freelist of companies. (Hint: insiders have been buying them).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$5.4m worth of Iron Road stock, about 3.7% of the company. We prefer to see high levels of insider ownership.



So What Does This Data Suggest About Iron Road Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Iron Road stock. While we like knowing 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 instance, we've identified 2 warning signs for Iron Road (1 makes us a bit uncomfortable) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist 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, but not derivative transactions.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.