Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Acacia Research Corporation (NASDAQ:ACTG), it sends a favourable message to the company's shareholders.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Acacia Research Insider Transactions Over The Last Year

The CEO, COO Martin McNulty made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$5.42 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.98). 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.

In the last twelve months insiders purchased 23.96k shares for US$127k. But they sold 15.00k shares for US$69k. Overall, Acacia Research insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Acacia Research

Acacia Research 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$4.1m worth of Acacia Research stock, about 1.5% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Acacia Research Tell Us?

The fact that there have been no Acacia Research insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Acacia Research insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Acacia Research. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Acacia Research.

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.