Even if it's not a huge purchase, we think it was good to see that Glen Chipman, the Executive Director of Commercial & Director of Iron Road Limited (ASX:IRD) recently shelled out AU$52k to buy stock, at AU$0.26 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 20%.

See our latest analysis for Iron Road

The Last 12 Months Of Insider Transactions At Iron Road

Notably, that recent purchase by Glen Chipman is the biggest insider purchase of Iron Road shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.25). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Iron Road insiders bought shares during the last year, they didn't sell. They paid about AU$0.18 on average. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price of AU$0.25. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Iron Road 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. From our data, it seems that Iron Road insiders own 3.7% of the company, worth about AU$7.3m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Iron Road 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Iron Road stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Iron Road (of which 1 can't be ignored!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.