Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of TMK Energy Limited (ASX:TMK), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for TMK Energy

TMK Energy Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Advisor to the Board Tsetsen Zantav bought AU$100k worth of shares at a price of AU$0.004 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.003). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months TMK Energy 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. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At TMK Energy Have Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at TMK Energy. Insiders shelled out AU$16k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.

Does TMK Energy Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. TMK Energy insiders own 42% of the company, currently worth about AU$8.8m 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.

What Might The Insider Transactions At TMK Energy Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like TMK Energy insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for 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. At Simply Wall St, we've found that TMK Energy has 6 warning signs (4 are a bit concerning!) that deserve your attention before going any further with your analysis.