Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Gratifii Limited (ASX:GTI), it sends a favourable message to the company's shareholders.

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.

See our latest analysis for Gratifii

The Last 12 Months Of Insider Transactions At Gratifii

In the last twelve months, the biggest single purchase by an insider was when insider Todd Hannigan bought AU$150k worth of shares at a price of AU$0.033 per share. That means that even when the share price was higher than AU$0.031 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Gratifii insiders were buying shares, but not selling. 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 growing companies that insiders are buying.

Does Gratifii Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Gratifii insiders own 33% of the company, worth about AU$6.4m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Gratifii Tell Us?

It doesn't really mean much that no insider has traded Gratifii shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Gratifii and their transactions don't cause us concern. 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. For example, Gratifii has 4 warning signs (and 1 which doesn't sit too well with us) we think you should know about.