Multiple insiders secured a larger position in Goosehead Insurance, Inc (NASDAQ:GSHD) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.

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 Goosehead Insurance

The Last 12 Months Of Insider Transactions At Goosehead Insurance

The President Mark Miller made the biggest insider purchase in the last 12 months. That single transaction was for US$581k worth of shares at a price of US$58.14 each. We do like to see buying, but this purchase was made at well below the current price of US$94.36. 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 Goosehead Insurance insiders were buying shares, but not selling. They paid about US$64.95 on average. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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 Goosehead Insurance

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Goosehead Insurance insiders own about US$57m worth of shares. That equates to 1.7% 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.

So What Do The Goosehead Insurance Insider Transactions Indicate?

The fact that there have been no Goosehead Insurance insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Goosehead Insurance and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 2 warning signs we've spotted with Goosehead Insurance (including 1 which is a bit unpleasant).