It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Watches of Switzerland Group plc's (LON:WOSG) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Watches of Switzerland Group

The Last 12 Months Of Insider Transactions At Watches of Switzerland Group

In the last twelve months, the biggest single purchase by an insider was when Independent Non-Executive Chairman Ian Carter bought UK￡206k worth of shares at a price of UK￡5.89 per share. That means that an insider was happy to buy shares at above the current price of UK￡4.14. 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. 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.

While Watches of Switzerland Group insiders bought shares during the last year, they didn't sell. They paid about UK￡4.64 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, 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).

Insider Ownership Of Watches of Switzerland Group

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Watches of Switzerland Group insiders own 3.4% of the company, worth about UK￡33m. 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 Do The Watches of Switzerland Group Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Watches of Switzerland Group 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. While conducting our analysis, we found that Watches of Switzerland Group has 2 warning signs and it would be unwise to ignore them.