We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Saferoads Holdings Limited (ASX:SRH), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

Check out our latest analysis for Saferoads Holdings

The Last 12 Months Of Insider Transactions At Saferoads Holdings

Over the last year, we can see that the biggest insider purchase was by Founder Darren Hotchkin for AU$108k worth of shares, at about AU$0.22 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.17). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Saferoads Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. 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.

Insiders at Saferoads Holdings Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Saferoads Holdings. insider Steven Difabrizio purchased AU$28k 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.

Does Saferoads Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Saferoads Holdings insiders own 56% of the company, worth about AU$3.6m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.