DevEx Resources Limited (ASX:DEV) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a AU$20m rise in the company's market capitalisation, translating to a gain of 40% on their initial investment. Put another way, the original AU$6.28m acquisition is now worth AU$8.80m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for DevEx Resources

The Last 12 Months Of Insider Transactions At DevEx Resources

Over the last year, we can see that the biggest insider purchase was by insider Graham Kluck for AU$2.2m worth of shares, at about AU$0.33 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.42), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While DevEx Resources 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

DevEx Resources Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at DevEx Resources. In total, insiders bought AU$3.4m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of DevEx Resources

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. We usually like to see fairly high levels of insider ownership. Insiders own 29% of DevEx Resources shares, worth about AU$54m. 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 Does This Data Suggest About DevEx Resources Insiders?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in DevEx Resources shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing DevEx Resources. When we did our research, we found 3 warning signs for DevEx Resources (2 are concerning!) that we believe deserve your full attention.