Multiple insiders secured a larger position in Petra Diamonds Limited (LON:PDL) 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 Petra Diamonds

The Last 12 Months Of Insider Transactions At Petra Diamonds

Notably, that recent purchase by Jose Gomez is the biggest insider purchase of Petra Diamonds shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is UK￡0.29. Of course they may have changed their mind. But this suggests they are optimistic. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

While Petra Diamonds 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Petra Diamonds Insiders Bought Stock Recently

It's good to see that Petra Diamonds insiders have made notable investments in the company's shares. Overall, three insiders shelled out UK￡1.2m for shares in the company -- and none sold. This could be interpreted as suggesting a positive outlook.

Does Petra Diamonds 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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Petra Diamonds insiders own 9.5% of the company, worth about UK￡5.3m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Petra Diamonds Insiders?

It is good to see recent purchasing. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Petra Diamonds insiders are expecting a bright future. 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. At Simply Wall St, we found 3 warning signs for Petra Diamonds that deserve your attention before buying any shares.