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 Amaero International Ltd (ASX:3DA), it sends a favourable message to the company's shareholders.

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.

See our latest analysis for Amaero International

The Last 12 Months Of Insider Transactions At Amaero International

The Non-Executive Director Omer Granit made the biggest insider purchase in the last 12 months. That single transaction was for AU$385k worth of shares at a price of AU$0.16 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.41. 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 Amaero International insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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 Amaero International 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Amaero International insiders own about AU$13m worth of shares (which is 5.9% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Amaero International Insiders?

The fact that there have been no Amaero International insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Amaero International and we see no evidence to suggest they are worried about the 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. When we did our research, we found 2 warning signs for Amaero International (1 is potentially serious!) that we believe deserve your full attention.