Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Incitec Pivot Limited (ASX:IPL), that sends out a positive 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.

View our latest analysis for Incitec Pivot

Incitec Pivot Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Brian Kruger bought AU$143k worth of shares at a price of AU$3.58 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$3.74. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Incitec Pivot insiders decided to buy shares at close to current prices.

Incitec Pivot insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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 Incitec Pivot 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Incitec Pivot insiders have about 0.08% of the stock, worth approximately AU$6.1m. We consider this fairly low insider ownership.

So What Does This Data Suggest About Incitec Pivot Insiders?

The fact that there have been no Incitec Pivot insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Incitec Pivot insiders are doubting the company. 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 instance, we've identified 3 warning signs for Incitec Pivot (1 shouldn't be ignored) you should be aware of.