Over the last year, a good number of insiders have significantly increased their holdings in Caledonia Investments Plc (LON:CLDN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Caledonia Investments

Caledonia Investments Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director William Wyatt for UK￡590k worth of shares, at about UK￡34.76 per share. That means that an insider was happy to buy shares at above the current price of UK￡34.70. 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. 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.

In the last twelve months Caledonia Investments insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

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. Caledonia Investments insiders own about UK￡21m worth of shares. That equates to 1.2% 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 Caledonia Investments Tell Us?

The fact that there have been no Caledonia Investments insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Caledonia Investments and we see no evidence to suggest they are worried about the future. Along with insider transactions, I recommend checking if Caledonia Investments is growing revenue. This free chart of historic revenue and earnings should make that easy.