When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Omni Bridgeway Limited's (ASX:OBL) instance, it's good news for shareholders.

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.

See our latest analysis for Omni Bridgeway

The Last 12 Months Of Insider Transactions At Omni Bridgeway

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Michael Graham Kay bought AU$203k worth of shares at a price of AU$1.60 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.95). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

Omni Bridgeway insiders may have bought shares in the last year, but they didn't sell any. 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!

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).

Does Omni Bridgeway 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. Based on our data, Omni Bridgeway insiders have about 2.6% of the stock, worth approximately AU$7.1m. I generally like to see higher levels of ownership.

So What Do The Omni Bridgeway Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Omni Bridgeway shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Omni Bridgeway stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.