Clarus Corporation (NASDAQ:CLAR) shareholders (or potential shareholders) will be happy to see that the Executive Chairman, Warren Kanders, recently bought a whopping US$1.2m worth of stock, at a price of US$4.14. While that only increased their holding size by 5.0%, it is still a big swing by our standards.

Check out our latest analysis for Clarus

Clarus Insider Transactions Over The Last Year

Notably, that recent purchase by Warren Kanders is the biggest insider purchase of Clarus shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$4.45. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Clarus insiders decided to buy shares at close to current prices.

Clarus insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Clarus 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. Insiders own 23% of Clarus shares, worth about US$38m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Clarus Insiders?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Clarus insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clarus. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Clarus.