Those following along with Sprintex Limited (ASX:SIX) will no doubt be intrigued by the recent purchase of shares by insider Richard Siemens, who spent a stonking AU$850k on stock at an average price of AU$0.05. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 13%.

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Sprintex Insider Transactions Over The Last Year

Notably, that recent purchase by Richard Siemens is the biggest insider purchase of Sprintex shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.051. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Sprintex share holders is that insiders were buying at near the current price.

Sprintex insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.041. To my mind it is good that insiders have invested their own money in the company. However, we do note that they were buying at significantly lower prices than today's share price. 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!

View our latest analysis for Sprintex

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

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Sprintex insiders own 53% of the company, worth about AU$15m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Sprintex Insiders?

The recent insider purchases are heartening. 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. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Sprintex. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sprintex. When we did our research, we found 6 warning signs for Sprintex (3 are concerning!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.