When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Tourmaline Bio, Inc.'s (NASDAQ:TRML) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Tourmaline Bio

The Last 12 Months Of Insider Transactions At Tourmaline Bio

In the last twelve months, the biggest single purchase by an insider was when Independent Director Caley Castelein bought US$281k worth of shares at a price of US$14.55 per share. That means that even when the share price was higher than US$13.70 (the recent price), an insider wanted to purchase shares. 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. To us, it's very important to consider the price insiders pay for 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 Tourmaline Bio insiders bought shares during the last year, they didn't sell. Their average price was about US$13.09. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. 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!

Tourmaline Bio is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Tourmaline Bio 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. Tourmaline Bio insiders own about US$32m worth of shares. That equates to 8.4% 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.

What Might The Insider Transactions At Tourmaline Bio Tell Us?

It doesn't really mean much that no insider has traded Tourmaline Bio shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Tourmaline Bio insiders are doubting the company, and they do own shares. 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 3 warning signs we've spotted with Tourmaline Bio (including 2 which are a bit concerning).