It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Nutritional Growth Solutions Ltd.'s (ASX:NGS) case, it's fantastic news for 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 Nutritional Growth Solutions

The Last 12 Months Of Insider Transactions At Nutritional Growth Solutions

Notably, that recent purchase by Danny Segman is the biggest insider purchase of Nutritional Growth Solutions shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of AU$0.044. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Nutritional Growth Solutions insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$0.042. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. 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).

Nutritional Growth Solutions Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Nutritional Growth Solutions. insider Danny Segman spent AU$300k on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.

Does Nutritional Growth Solutions Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Nutritional Growth Solutions insiders own about AU$1.0m worth of shares. That equates to 21% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.