Insiders who bought Cardiff Oncology, Inc. (NASDAQ:CRDF) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$29m as a result of the stock's 10% gain over the same period. As a result, their original purchase of US$1.01m worth of stock is now worth US$1.81m.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Cardiff Oncology

Cardiff Oncology Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Gary Pace bought US$940k worth of shares at a price of US$2.60 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.78. 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.

Cardiff Oncology insiders may have bought shares in the last year, but they didn't sell any. 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!

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).

Insiders At Cardiff Oncology Have Bought Stock Recently

Over the last quarter, Cardiff Oncology insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$1.0m worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of Cardiff Oncology

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. Insiders own 2.0% of Cardiff Oncology shares, worth about US$5.7m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Cardiff Oncology Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cardiff Oncology insiders are expecting a bright future. 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. Be aware that Cardiff Oncology is showing 5 warning signs in our investment analysis, and 4 of those are a bit unpleasant...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list 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 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.