Investors who take an interest in Eumundi Group Limited (ASX:EBG) should definitely note that the Non-Executive Chairman, Joseph Ganim, recently paid AU$1.07 per share to buy AU$472k worth of the stock. Although the purchase only increased their holding by 3.5%, it is still a solid purchase in our view.

View our latest analysis for Eumundi Group

Eumundi Group Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the insider, Tracy Fraser, sold AU$3.1m worth of shares at a price of AU$1.19 per share. That means that an insider was selling shares at around the current price of AU$1.14. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. Tracy Fraser was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 3.68m shares for AU$4.5m. But insiders sold 2.63m shares worth AU$3.1m. In total, Eumundi Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Eumundi Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Eumundi Group insiders own about AU$44m worth of shares (which is 79% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Eumundi Group Tell Us?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Eumundi Group insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Eumundi Group (including 2 which are potentially serious).

But note: Eumundi Group 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.