When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Adveritas Limited's (ASX:AV1) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Adveritas

The Last 12 Months Of Insider Transactions At Adveritas

Over the last year, we can see that the biggest insider purchase was by insider Mark Mcconell for AU$250k worth of shares, at about AU$0.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.092. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Adveritas 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

Adveritas 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 Of Adveritas

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Adveritas insiders own 21% of the company, worth about AU$15m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Adveritas Tell Us?

It doesn't really mean much that no insider has traded Adveritas shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Adveritas insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Adveritas. For example, Adveritas has 5 warning signs (and 3 which don't sit too well with us) we think you should know about.

But note: Adveritas 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.