Even if it's not a huge purchase, we think it was good to see that Roger Hardy, the Co-Founder of Kits Eyecare Ltd. (TSE:KITS) recently shelled out CA$98k to buy stock, at CA$2.79 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

Check out our latest analysis for Kits Eyecare

Kits Eyecare Insider Transactions Over The Last Year

Notably, that recent purchase by Co-Founder Roger Hardy was not the only time they bought Kits Eyecare shares this year. They previously made an even bigger purchase of CA$1.7m worth of shares at a price of CA$3.72 per share. That means that even when the share price was higher than CA$2.76 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Roger Hardy was the only individual insider to buy shares in the last twelve months. Notably Roger Hardy was also the biggest seller.

Roger Hardy bought 1.18m shares over the last 12 months at an average price of CA$2.84. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Does Kits Eyecare Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Kits Eyecare insiders own 54% of the company, currently worth about CA$46m based on the recent share price. 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 Does This Data Suggest About Kits Eyecare Insiders?

The recent insider purchase is 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. When combined with notable insider ownership, these factors suggest Kits Eyecare insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. Case in point: We've spotted 2 warning signs for Kits Eyecare you should be aware of, and 1 of these makes us a bit uncomfortable.