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

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for ADF Group

ADF Group Insider Transactions Over The Last Year

The Independent Director Jean Rochette made the biggest insider purchase in the last 12 months. That single transaction was for CA$100k worth of shares at a price of CA$5.04 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of CA$11.11. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

In the last twelve months ADF Group insiders were buying shares, but not selling. They paid about CA$5.65 on average. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

ADF Group 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.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 28% of ADF Group shares, worth about CA$93m. 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 Do The ADF Group Insider Transactions Indicate?

It doesn't really mean much that no insider has traded ADF Group 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 ADF Group insiders are doubting the company, and they do own shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.