When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Good Drinks Australia Limited's (ASX:GDA) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Good Drinks Australia

Good Drinks Australia Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder John Hoedemaker for AU$106k worth of shares, at about AU$0.25 per share. We do like to see buying, but this purchase was made at well below the current price of AU$0.29. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Good Drinks Australia insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Good Drinks Australia insiders own about AU$8.9m worth of shares. That equates to 23% 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.

What Might The Insider Transactions At Good Drinks Australia Tell Us?

It doesn't really mean much that no insider has traded Good Drinks Australia shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Good Drinks Australia insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Good Drinks Australia has 3 warning signs (1 makes us a bit uncomfortable!) that deserve your attention before going any further with your analysis.

Of course Good Drinks Australia may not be the best stock to buy. So you may wish to see this free collection of high quality 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.