The recent 12% drop in Cluey Ltd's (ASX:CLU) stock could come as a blow to insiders who purchased AU$2.11m worth of stock at an average buy price of AU$0.15 over the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth AU$1.13m, which is not what they expected.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Cluey

Cluey Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Co-Founder & Executive Deputy Chairman Mark Rohald for AU$854k worth of shares, at about AU$0.15 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.08). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. 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 Cluey insiders were buying shares, but not selling. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Are Cluey Insiders Buying Or Selling?

Over the last three months, we've seen a bit of insider buying at Cluey. Insiders purchased AU$12k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Insider Ownership Of Cluey

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cluey insiders own about AU$4.6m worth of shares. That equates to 29% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.