When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Loop Industries, Inc.'s (NASDAQ:LOOP) 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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Loop Industries Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Director Spencer Hart bought US$188k worth of shares at a price of US$1.29 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.08). 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 249.45k shares worth US$303k. But they sold 101.28k shares for US$158k. In total, Loop Industries insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Loop Industries

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At Loop Industries Have Bought Stock Recently

Over the last quarter, Loop Industries insiders have spent a meaningful amount on shares. Specifically, Independent Director Spencer Hart bought US$188k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Loop Industries

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. Loop Industries insiders own 42% of the company, currently worth about US$22m 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.