Investors who take an interest in Sportsman's Warehouse Holdings, Inc. (NASDAQ:SPWH) should definitely note that the President, Paul Stone, recently paid US$2.54 per share to buy US$101k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 798%.

See our latest analysis for Sportsman's Warehouse Holdings

The Last 12 Months Of Insider Transactions At Sportsman's Warehouse Holdings

The Independent Director Steven Sansom made the biggest insider purchase in the last 12 months. That single transaction was for US$190k worth of shares at a price of US$3.80 each. That means that an insider was happy to buy shares at above the current price of US$2.65. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 240.60k shares worth US$876k. On the other hand they divested 17.00k shares, for US$45k. In total, Sportsman's Warehouse Holdings insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Sportsman's Warehouse Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Sportsman's Warehouse Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Sportsman's Warehouse Holdings insiders have about 3.0% of the stock, worth approximately US$2.9m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Sportsman's Warehouse Holdings Insiders?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Sportsman's Warehouse Holdings insiders are reasonably well aligned, and optimistic for the future. While it's good to be aware of 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. Every company has risks, and we've spotted 2 warning signs for Sportsman's Warehouse Holdings you should know about.

But note: Sportsman's Warehouse Holdings 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.