It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Integral Diagnostics Limited (ASX:IDX), you may well want to know whether insiders have been buying or selling.

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Integral Diagnostics

Integral Diagnostics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Chairman Helen Kurincic for AU$193k worth of shares, at about AU$2.71 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$4.05. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 238.82k shares worth AU$657k. On the other hand they divested 80.00k shares, for AU$292k. In the last twelve months there was more buying than selling by Integral Diagnostics insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Integral Diagnostics Insiders Are Selling The Stock

Over the last three months, we've seen notably more insider selling, than insider buying, at Integral Diagnostics. We note Executive Director Chien Ho cashed in AU$123k worth of shares. Meanwhile Independent Non-Executive Director Raelene Murphy bought AU$26k worth. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.