Insiders who bought CA$247.3k worth of GreenFirst Forest Products Inc. (TSE:GFP) stock in the last year recovered part of their losses as the stock rose by 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling CA$113k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for GreenFirst Forest Products

GreenFirst Forest Products Insider Transactions Over The Last Year

The Independent Director Michael Mitchell made the biggest insider purchase in the last 12 months. That single transaction was for CA$155k worth of shares at a price of CA$0.79 each. That means that even when the share price was higher than CA$0.30 (the recent price), an insider wanted to purchase shares. 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While GreenFirst Forest Products insiders bought shares during the last year, they didn't sell. They paid about CA$0.56 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

GreenFirst Forest Products is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

GreenFirst Forest Products Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at GreenFirst Forest Products. Lead Independent Director Marty Proctor shelled out CA$62k for shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own CA$2.1m worth of GreenFirst Forest Products stock, about 3.6% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. I generally like to see higher levels of ownership.

So What Do The GreenFirst Forest Products Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. 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 GreenFirst Forest Products stock. 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. To that end, you should learn about the 4 warning signs we've spotted with GreenFirst Forest Products (including 3 which can't be ignored).

But note: GreenFirst Forest Products 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 of direct interests only, but not derivative transactions or indirect interests.

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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.