Insiders were net buyers of The Law Debenture Corporation p.l.c.'s (LON:LWDB ) 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 Law Debenture

The Last 12 Months Of Insider Transactions At Law Debenture

The Independent Non-Executive Director Parwinder Purewal made the biggest insider purchase in the last 12 months. That single transaction was for UK£149k worth of shares at a price of UK£8.95 each. So it's clear an insider wanted to buy, at around the current price, which is UK£8.99. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. 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 Parwinder Purewal.

Parwinder Purewal bought a total of 17.25k shares over the year at an average price of UK£8.90. 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!

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

Insider Ownership Of Law Debenture

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. From what we can see in our data, insiders own only about UK£745k worth of Law Debenture shares. We might be missing something but that seems like very low insider ownership.

So What Do The Law Debenture Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Law Debenture insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Law Debenture. While conducting our analysis, we found that Law Debenture has 1 warning sign and it would be unwise to ignore it.