Those following along with Peter Warren Automotive Holdings Limited (ASX:PWR) will no doubt be intrigued by the recent purchase of shares by John Eastham, Director of the company, who spent a stonking AU$1.5m on stock at an average price of AU$1.78. That purchase boosted their holding by 94%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Peter Warren Automotive Holdings

The Last 12 Months Of Insider Transactions At Peter Warren Automotive Holdings

Notably, that recent purchase by John Eastham is the biggest insider purchase of Peter Warren Automotive Holdings 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 AU$1.84. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Peter Warren Automotive Holdings share holders is that insiders were buying at near the current price.

In the last twelve months Peter Warren Automotive Holdings insiders were buying shares, but not selling. 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).

Does Peter Warren Automotive Holdings Boast High 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. We usually like to see fairly high levels of insider ownership. Peter Warren Automotive Holdings insiders own 42% of the company, currently worth about AU$125m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Peter Warren Automotive Holdings Insiders?

It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Peter Warren Automotive Holdings. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for Peter Warren Automotive Holdings (of which 2 are significant!) you should know about.