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 Regional Management Corp. (NYSE:RM), 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 do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Regional Management

The Last 12 Months Of Insider Transactions At Regional Management

The insider John Schachtel made the biggest insider purchase in the last 12 months. That single transaction was for US$112k worth of shares at a price of US$22.41 each. Even though the purchase was made at a significantly lower price than the recent price (US$31.70), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Regional Management 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. By clicking on the graph below, you can see the precise details of each insider transaction!

Regional Management is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Regional Management Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Regional Management insiders own about US$29m worth of shares. That equates to 8.8% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Regional Management Insider Transactions Indicate?

The fact that there have been no Regional Management insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Regional Management and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 makes us a bit uncomfortable!) that you ought to be aware of before buying any shares in Regional Management.