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 xReality Group Limited (ASX:XRG), that sends out a positive message to the company's shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for xReality Group

xReality Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director Philip Copeland for AU$73k worth of shares, at about AU$0.035 per share. That means that an insider was happy to buy shares at around the current price of AU$0.036. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for xReality Group share holders is that insiders were buying at near the current price.

In the last twelve months xReality Group insiders were buying shares, but not selling. They paid about AU$0.031 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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.

Does xReality Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. xReality Group insiders own about AU$4.1m 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.

So What Do The xReality Group Insider Transactions Indicate?

The fact that there have been no xReality Group insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in xReality Group and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - xReality Group has 2 warning signs we think you should be aware of.