It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in NFI Group Inc.'s (TSE:NFI) 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, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for NFI Group

The Last 12 Months Of Insider Transactions At NFI Group

Over the last year, we can see that the biggest insider purchase was by Non-Executive Vice Chairman of the Board Colin Robertson for CA$582k worth of shares, at about CA$11.65 per share. Even though the purchase was made at a significantly lower price than the recent price (CA$15.59), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 101.39k shares worth CA$1.3m. On the other hand they divested 9.21k shares, for CA$122k. In total, NFI Group insiders bought more than they sold over the last year. 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!

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.

NFI Group Insiders Are Selling The Stock

The last three months saw some NFI Group insider selling. Insiders sold just CA$42k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership Of NFI Group

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.0% of NFI Group shares, worth about CA$19m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About NFI Group Insiders?

While there has not been any insider buying in the last three months, there has been selling. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in NFI Group and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NFI Group. Every company has risks, and we've spotted 1 warning sign for NFI Group you should know about.