Viewing insider transactions for Rare Foods Australia Limited's (ASX:RFA ) over the last year, we see that insiders were net buyers. This means that a larger number of shares were purchased by insiders in relation to shares sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Rare Foods Australia

The Last 12 Months Of Insider Transactions At Rare Foods Australia

There wasn't any very large single transaction over the last year, but we can still observe some trading.

Ignazio Ricciardi bought 2.24m shares over the last 12 months at an average price of AU$0.074. 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!

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.

Rare Foods Australia Insiders Bought Stock Recently

We saw some Rare Foods Australia insider buying shares in the last three months. Non-Executive Director Ignazio Ricciardi bought AU$165k worth of shares in that time. On the other hand, Executive Director of Corporate Development & Executive Director Bradley Adams sold AU$105k worth of shares. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.

Insider Ownership of Rare Foods Australia

For a common shareholder, it is worth checking how many shares are held by company 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 appears that Rare Foods Australia insiders own 26% of the company, worth about AU$4.3m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Rare Foods Australia Insider Transactions Indicate?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Rare Foods Australia insiders are well aligned, and that they may think the share price is too low. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Rare Foods Australia (1 is potentially serious!) that we believe deserve your full attention.

But note: Rare Foods Australia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions, but not derivative transactions.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.