When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Southern Palladium Limited's (ASX:SPD) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Southern Palladium

Southern Palladium Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Lindiwe Nkosi-Thomas for AU$114k worth of shares, at about AU$0.44 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.56. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 496.50k shares worth AU$259k. On the other hand they divested 173.00k shares, for AU$104k. Overall, Southern Palladium insiders were net buyers during the last year. They paid about AU$0.52 on average. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent 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!

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

Southern Palladium Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Southern Palladium. In total, insiders bought AU$145k worth of shares in that time. On the other hand, Independent Non-Executive Director Robert Thomson sold AU$104k worth of shares. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.

Does Southern Palladium Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 15% of Southern Palladium shares, worth about AU$7.6m, according to our data. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Southern Palladium Insider Transactions Indicate?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Southern Palladium stock. 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 2 warning signs we've spotted with Southern Palladium (including 1 which is concerning).

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.