Whilst it may not be a huge deal, we thought it was good to see that the RF Industries, Ltd. (NASDAQ:RFIL) Independent Chairman of the Board, Mark Holdsworth, recently bought US$71k worth of stock, for US$4.72 per share. However, it only increased their shares held by 9.9%, and it wasn't a huge purchase by absolute value, either.

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RF Industries Insider Transactions Over The Last Year

In fact, the recent purchase by Independent Chairman of the Board Mark Holdsworth was not their only acquisition of RF Industries shares this year. They previously made an even bigger purchase of US$71k worth of shares at a price of US$4.07 per share. Even though the purchase was made at a significantly lower price than the recent price (US$4.70), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Mark Holdsworth purchased 54.94k shares over the year. The average price per share was US$4.20. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for RF Industries

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).

Does RF Industries Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that RF Industries insiders own about US$3.5m worth of shares (which is 6.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Do The RF Industries Insider Transactions Indicate?

It is good to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that RF Industries insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with RF Industries and understanding this should be part of your investment process.

But note: RF Industries 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.