When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Locate Technologies Limited's (ASX:LOC) instance, it's good 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.

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The Last 12 Months Of Insider Transactions At Locate Technologies

Notably, that recent purchase by Stephen Orenstein is the biggest insider purchase of Locate Technologies shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.052). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Locate Technologies insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Locate Technologies

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

Insiders At Locate Technologies Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Locate Technologies. Not only was there no selling that we can see, but they collectively bought AU$162k worth of shares. That shows some optimism about the company's future.

Insider Ownership Of Locate Technologies

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Locate Technologies insiders own 55% of the company, worth about AU$5.7m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Locate Technologies Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Locate Technologies. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Locate Technologies has 4 warning signs (and 3 which shouldn't be ignored) we think you should know about.