Looking at musicMagpie plc's (LON:MMAG ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.

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 musicMagpie

musicMagpie Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when insider Damian Hanson bought UK￡100k worth of shares at a price of UK￡0.11 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK￡0.068). 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 always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Damian Hanson was the only individual insider to buy during the last year.

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 undervalued small cap companies that insiders are buying.

Does musicMagpie Boast High Insider Ownership?

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. musicMagpie insiders own about UK￡2.3m worth of shares. That equates to 35% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About musicMagpie Insiders?

The fact that there have been no musicMagpie insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in musicMagpie and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing musicMagpie. Case in point: We've spotted 3 warning signs for musicMagpie you should be aware of.