It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Cantaloupe, Inc.'s (NASDAQ:CTLP) case, it's fantastic news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Cantaloupe

The Last 12 Months Of Insider Transactions At Cantaloupe

The Non-Independent Director Ian Harris made the biggest insider purchase in the last 12 months. That single transaction was for US$105k worth of shares at a price of US$6.34 each. That means that an insider was happy to buy shares at above the current price of US$6.24. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.

While Cantaloupe insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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.

Insider Ownership Of Cantaloupe

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cantaloupe insiders own about US$34m worth of shares. That equates to 7.4% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Cantaloupe Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Cantaloupe and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Cantaloupe, you should check out this free report on analyst forecasts for the company.