Those following along with Costain Group PLC (LON:COST) will no doubt be intrigued by the recent purchase of shares by Alexander Vaughan, CEO, Member of Group Executive Board & Director of the company, who spent a stonking UK£5.0m on stock at an average price of UK£60.00. That purchase boosted their holding by 70%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

Check out our latest analysis for Costain Group

Costain Group Insider Transactions Over The Last Year

Notably, that recent purchase by Alexander Vaughan is the biggest insider purchase of Costain Group shares that we've seen in the last year. That means that even when the share price was higher than UK£0.77 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Costain Group insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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

Does Costain Group Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Costain Group insiders own about UK£657k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

So What Does This Data Suggest About Costain Group Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Costain Group insiders are expecting a bright future. 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 3 warning signs we've spotted with Costain Group (including 2 which are a bit unpleasant).