When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Alkane Resources Limited's (ASX:ALK) 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.

View our latest analysis for Alkane Resources

Alkane Resources Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Nicholas Earner for AU$75k worth of shares, at about AU$0.44 per share. That means that even when the share price was higher than AU$0.42 (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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Alkane Resources insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Alkane Resources Insiders Bought Stock Recently

Over the last quarter, Alkane Resources insiders have spent a meaningful amount on shares. In total, insiders bought AU$119k 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 11% of Alkane Resources shares, worth about AU$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Alkane Resources Tell Us?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Given that insiders also own a fair bit of Alkane Resources we think they are probably pretty confident of a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Alkane Resources you should be aware of, and 1 of these is significant.