In the last year, multiple insiders have substantially increased their holdings of Innovative Eyewear, Inc. (NASDAQ:LUCY) stock, indicating that insiders' optimism about the company's prospects has increased.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Innovative Eyewear

Innovative Eyewear Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Vladimir Galkin for US$912k worth of shares, at about US$9.65 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.57). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

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

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

Innovative Eyewear Insiders Bought Stock Recently

It's good to see that Innovative Eyewear insiders have made notable investments in the company's shares. Overall, three insiders shelled out US$1.8m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Innovative Eyewear Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Innovative Eyewear insiders own 42% of the company, currently worth about US$7.6m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Innovative Eyewear Insiders?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. 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 Innovative Eyewear. One for the watchlist, at least! 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. Case in point: We've spotted 6 warning signs for Innovative Eyewear you should be aware of, and 4 of these are potentially serious.

Of course Innovative Eyewear 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.