ClearOne, Inc. (NASDAQ:CLRO) shareholders (or potential shareholders) will be happy to see that insider Edward Bagley recently bought a whopping US$1.0m worth of stock, at a price of US$0.50. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.

View our latest analysis for ClearOne

ClearOne Insider Transactions Over The Last Year

In fact, the recent purchase by Edward Bagley was the biggest purchase of ClearOne shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$0.52. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider bought shares at close to current prices. The only individual insider to buy over the last year was Edward Bagley.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ClearOne is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does ClearOne 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. We usually like to see fairly high levels of insider ownership. ClearOne insiders own 44% of the company, currently worth about US$5.5m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About ClearOne Insiders?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about ClearOne. Looks promising! 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. When we did our research, we found 2 warning signs for ClearOne (1 makes us a bit uncomfortable!) that we believe deserve your full attention.