When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Capital Limited's (LON:CAPD) instance, it's good 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.

View our latest analysis for Capital

The Last 12 Months Of Insider Transactions At Capital

Over the last year, we can see that the biggest insider purchase was by Executive Chairman Jamie Boyton for UK￡292k worth of shares, at about UK￡0.92 per share. That means that even when the share price was higher than UK￡0.83 (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 Capital insiders bought shares during the last year, they didn't sell. 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!

Capital 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 Capital Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Capital insiders own 17% of the company, worth about UK￡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.

So What Do The Capital Insider Transactions Indicate?

The fact that there have been no Capital insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Capital 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 Capital. You'd be interested to know, that we found 1 warning sign for Capital and we suggest you have a look.