It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in SR Bancorp, Inc.'s (NASDAQ:SRBK) case, it's fantastic news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

We've discovered 1 warning sign about SR Bancorp. View them for free.

SR Bancorp Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Executive Chairman David Orbach for US$183k worth of shares, at about US$9.30 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$13.04. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

SR Bancorp insiders may have bought shares in the last year, but they didn't sell any. They paid about US$10.30 on average. To my mind it is good that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for SR Bancorp

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).

SR Bancorp Insiders Bought Stock Recently

Over the last quarter, SR Bancorp insiders have spent a meaningful amount on shares. Overall, five insiders shelled out US$198k for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does SR Bancorp Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 7.2% of SR Bancorp shares, worth about US$8.3m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The SR Bancorp Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that SR Bancorp insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for SR Bancorp you should know about.

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.