Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of NGE Capital Limited (ASX:NGE), that sends out a positive 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.

View our latest analysis for NGE Capital

NGE Capital Insider Transactions Over The Last Year

The Portfolio Manager & Executive Director Adam Saunders made the biggest insider purchase in the last 12 months. That single transaction was for AU$80k worth of shares at a price of AU$0.80 each. Even though the purchase was made at a significantly lower price than the recent price (AU$1.03), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months insiders purchased 165.00k shares for AU$138k. On the other hand they divested 10.00k shares, for AU$11k. In total, NGE Capital insiders bought more than they sold over the last year. 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 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.

Are NGE Capital Insiders Buying Or Selling?

In the last three months, Executive Chairman & Chief Investment Officer David Lamm bought AU$17k. That's only a tiny bit more than the sales, worth AU$11k. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.

Does NGE Capital 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. Insiders own 30% of NGE Capital shares, worth about AU$11m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At NGE Capital 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. Insiders own shares in NGE Capital 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 NGE Capital. Every company has risks, and we've spotted 3 warning signs for NGE Capital you should know about.