Insiders were net buyers of EVZ Limited's (ASX:EVZ ) stock during the past year. That is, insiders bought more stock than they 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.

View our latest analysis for EVZ

The Last 12 Months Of Insider Transactions At EVZ

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Graham Burns for AU$187k worth of shares, at about AU$0.20 per share. That means that an insider was happy to buy shares at above the current price of AU$0.15. 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. 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. Graham Burns was the only individual insider to buy during the last year.

Graham Burns purchased 1.19m shares over the year. The average price per share was AU$0.20. 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!

EVZ is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of EVZ

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 16% of EVZ shares, worth about AU$2.9m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About EVZ Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think EVZ insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, EVZ has 3 warning signs (and 1 which is potentially serious) we think you should know about.