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 Castile Resources Limited (ASX:CST), 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.

Check out our latest analysis for Castile Resources

Castile Resources Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Ram Kangatharan bought AU$159k worth of shares at a price of AU$0.084 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$0.09. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Castile Resources insiders decided to buy shares at close to current prices.

While Castile Resources insiders bought shares during the last year, they didn't sell. 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 Castile Resources Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Castile Resources insiders own 20% of the company, worth about AU$4.4m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Castile Resources Tell Us?

The fact that there have been no Castile Resources 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 Castile Resources and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for Castile Resources (2 are a bit concerning) you should be aware of.