Viewing insider transactions for Lynch Group Holdings Limited's (ASX:LGL ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Lynch Group Holdings

The Last 12 Months Of Insider Transactions At Lynch Group Holdings

The Non-Executive Chairman Patrick Elliott made the biggest insider purchase in the last 12 months. That single transaction was for AU$734k worth of shares at a price of AU$3.61 each. That means that an insider was happy to buy shares at above the current price of AU$2.50. 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Patrick Elliott.

Patrick Elliott bought a total of 269.25k shares over the year at an average price of AU$3.64. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lynch Group Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Lynch Group Holdings

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Lynch Group Holdings insiders own 2.6% of the company, worth about AU$7.9m. But they may have an indirect interest through a corporate structure that we haven't picked up on. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Lynch Group Holdings Tell Us?

It doesn't really mean much that no insider has traded Lynch Group Holdings shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Lynch Group Holdings insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. You'd be interested to know, that we found 3 warning signs for Lynch Group Holdings and we suggest you have a look.