It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Domino's Pizza Enterprises Limited's (ASX:DMP) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Domino's Pizza Enterprises

Domino's Pizza Enterprises Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Tony Peake for AU$191k worth of shares, at about AU$137 per share. That means that even when the share price was higher than AU$104 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

While Domino's Pizza Enterprises insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Domino's Pizza Enterprises 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 Domino's Pizza Enterprises

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Domino's Pizza Enterprises insiders own about AU$454m worth of shares (which is 5.1% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Domino's Pizza Enterprises Insider Transactions Indicate?

The fact that there have been no Domino's Pizza Enterprises insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Domino's Pizza Enterprises insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Domino's Pizza Enterprises. At Simply Wall St, we found 2 warning signs for Domino's Pizza Enterprises that deserve your attention before buying any shares.